Singapore
CBRE's Commentary on Monthly New Home Sales - July 2022
August 15, 2022
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Head of Marketing & Communications, Singapore
By Ms Tricia Song (宋明蔚), Head of Research, Southeast Asia, CBRE
Bolstered by pent-up demand for mass-market launches, new developer sales (excluding ECs) rebounded strongly from a quiet June, rising 70.9% m-o-m to 834 units, on the almost-sold out AMO Residence launch. On a year-on-year basis, developer sales were 47.9% lower, as July 2021 was boosted by another major mass-market launch Pasir Ris 8, as well as buoyant market sentiment then.
Including the 4,222 new homes sold in H1 2022, preliminary new developer sales (excluding ECs) year-to-July now stand at 5,056 units, 37.3% below the 8,061 units sold over the same period last year.
Top 10 Selling Projects in July 2022 (including ECs and landed)
Project Name | Street Name | Tenure | Locality | Units Sold | Median Price ($psf) in the Month | % of Project Sold to date |
---|---|---|---|---|---|---|
AMO RESIDENCE | ANG MO KIO RISE | 99 yrs | OCR | 366 | $2,110 | 98% |
HYLL ON HOLLAND | HOLLAND ROAD | Freehold | CCR | 28 | $2,638 | 57% |
RIVIERE | JIAK KIM STREET | 99 yrs | RCR | 27 | $2,907 | 70% |
KI RESIDENCES AT BROOKVALE | BROOKVALE DRIVE | 999 yrs | OCR | 17 | $2,091 | 95% |
PERFECT TEN | BUKIT TIMAH ROAD | Freehold | CCR | 17 | $2,932 | 30% |
PARC CLEMATIS | JALAN LEMPENG | 99 yrs | OCR | 17 | $1,808 | 97% |
THE FLORENCE RESIDENCES | HOUGANG AVENUE 2 | 99 yrs | OCR | 17 | $1,743 | 100% |
LEEDON GREEN | LEEDON HEIGHTS | Freehold | CCR | 16 | $2,749 | 66% |
THE HYDE | BALMORAL ROAD | Freehold | CCR | 15 | $2,922 | 70% |
FORETT AT BUKIT TIMAH | TOH TUCK ROAD | Freehold | RCR | 15 | $2,230 | 95% |
Source: CBRE Research, URA
The sole launch and the top-selling project in July 2022 was suburban condominium, AMO Residence, developed by UOL. The 372-unit development was met with robust demand, moving 366 of its total 372 units (98%) over its launch weekend at a median price of S$2,110 psf, setting new benchmark prices for a mass-market launch. Apart from UOL’s established track record, the project benefitted from its unblocked views over a landed area, proximity to popular schools, and upgraders’ demand in the mature Ang Mo Kio estate, which has not seen a new condo launch in more than 8 years. It is also the first major OCR launch in 2022 so far since the implementation of December 2021’s cooling measures and is indicative of the strong upgraders’ demand for private homes.
This was followed by CCR project, Hyll on Holland which sold 28 units at a median price of S$2,638 psf and RCR project, Riviere, which sold 27 units at a median price of S$2,907 psf.
New Home Sales (excl. ECs) by quantum
Source: CBRE Research, URA
*Based on Realis new sales (excl. EC) caveats extracted on 15 Aug 2022
Based on quantum size, the largest proportion of new private homes sold (excl. ECs) remained in the S$1.50 mil - S$2 mil range which made up 31.2% of the month’s sales. This was followed by the S$2 mil - S$2.50 mil bracket at 20.9% and the S$1 mil – S$1.50 mil bracket at 19.7%.
By market segment, July 2022’s developer sales were skewed towards the Outside Central Region (OCR) where 485 units (58.2%) were sold, followed by the Core Central Region (CCR) where 185 units (22.2%) were sold and the Rest of Central Region (RCR) which saw the sale of 164 units (19.7%). This compares to 42.2% in the CCR, 35.0% in the RCR and 22.7% in the OCR in June 2022.
Outlook
Looking ahead, the robust performance at Amo Residence should support sentiment in the property market for the rest of the year. This bodes well for the upcoming launches of GuocoLand’s Lentor Modern (605 units) at Lentor Central and Frasers Property’s Sky Eden @ Bedok (158 units) at Bedok Central, which could see interest from upgraders and first-time homebuyers who are largely unaffected by the recent round of cooling measures. However, rising macroeconomic uncertainties and mortgage rates could temper optimism in H2 2022.
CBRE Research maintains its 2022 new home sales forecast at 9,000 units, compared to 13,027 new home sales in 2021.
Q2 2022 private residential property price index registered a 3.5% q-o-q increase in Q2 2022, a pickup after the marginal 0.7% increase in Q1 2022. Private home prices have increased by 4.2% in H1 2022, following 2021’s full year increase of 10.6%. However, price growth momentum is expected to moderate in H2 2022 in the face of rising interest rates and macroeconomic headwinds which should crimp affordability, especially for over-leveraged buyers. Barring a severe global economic downturn, CBRE Research expects private home prices to increase by 5% for the full year 2022.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.