After a relatively slow market performance in the earlier months of 2022, new private home sales activity rebounded strongly in May 2022. The strong performance of two new launches, Piccadilly Grand and Liv @ MB, which accounted for about 41% of total transactions, spurred a surge in new private home sales in May 2022.
Developers sold a total of 1,356 new private homes (excluding Executive Condominiums, ECs) in May, a 105.5% increase from the revised 660 transactions in the previous month. This is also the highest monthly new private home sales volume since 1,547 units were sold in November 2021. Compared to May 2021, developer sales in May 2022 increased by 51.5%. The sales in May brought the total new private home sales for the first five months of 2022 to 3,841 units (excluding ECs), a 32% decrease from the 5,658 units transacted in the same period in 2021.
The Rest of Central Region (RCR) dominated sales in May, with 893 new private homes sold, a substantial increase of 207% from April’s sales. The RCR sub-market accounted for about 66% of the total sales for the month, primarily driven by Piccadilly Grand and Liv @ MB. Piccadilly Grand sold 318 units at a median price of S$2,175 psf, while Liv @ MB sold 236 units at a median price of S$2,405 psf.
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New private home sales in the Outside Central Region (OCR) also grew in May, with 247 units transacted, an increase of nearly 53% from the 162 units sold last month. There were no new launches in the OCR sub-market, which helped drive sales activity for existing projects. The best-selling private residential project in the OCR in May was The Florence Residences (launched in March 2019), which sold 40 units at a median price of S$1,786 psf. The Gazania (launched in May 2019) sold 33 units at a median price of S$2,241 psf.
Meanwhile, the Core Central Region (CCR) saw sales of 216 new private homes in May, a 4.3% increase compared to April. The most popular CCR project last month was Haus on Handy, which sold 24 units at a median price of S$2,682 psf. Leedon Green, Perfect Ten, Hyll on Holland, and Irwell Hill Residences also helped support sales in May, with median prices ranging from S$2,631 psf to S$2,861 psf. In the EC market, a total of 20 new units were sold in May, a sharp 89% drop from the 186 transactions in April, when EC sales were driven by North Gaia EC in Yishun. The best-selling EC project in May was North Gaia EC, which sold 11 units at a median price of S$1,285 psf.
Developers launched 1,240 new units (excluding ECs) for sale in May, compared to 397 units put on the market in April. This is the highest number of new units launched in a single month since 1,283 units were sold in November 2021.
In May 2022, local buyers continued to account for the largest proportion of new private home sales, at 83.3% of total sales. An analysis of caveat data by region (see Figure 1) shows an increase in the number of new CCR and RCR units purchased by Singaporean buyers between April and May. This suggests that local buyers are now recognizing the value of projects in the city and city-fringe areas. Singapore citizens accounted for 73.5% of new private home sales in the CCR in May (up from 66.1% in April) and 84.6% of sales in the RCR (up from 80.9% in April).
Meanwhile, property demand from foreigners and Singapore Permanent Residents (PRs) remained stable in May, accounting for 6.2% and 10.5% of overall new private home sales respectively. As international travel resumes, the buying momentum from foreign buyers in the CCR continues to be robust, with these buyers purchasing 13.5% of new homes in the CCR in May (see Figure 1).
According to caveat data, about 56.8% of non-landed new private homes transacted in May 2022 were priced below S$2 million (see Figure 2), higher than the 45.7% in April. This increase was partly driven by sales at Piccadilly Grand and Liv @ MB. In terms of price quantum, the S$1.5 million to S$2 million range remains the sweet spot for new private homes. Meanwhile, the most expensive non-landed new private home sold in May 2022 was a 6,092 sq ft freehold unit at Les Maisons Nassim, which sold for S$37 million (or S$6,073 psf).
Market Outlook
Following the introduction of new cooling measures in December 2021, more buyers may decide to enter the market as more new projects are progressively launched, including those who have been on the sidelines. Additionally, buyers may be observing the average selling prices of new private homes in recent months to ascertain that prices will not fall significantly. With land prices remaining firm, some buyers believe that prices for future new launches will likely remain high. Furthermore, some homebuyers may decide to buy sooner to lock in more favorable interest rates, as multiple rate hikes are possible in the future.
The sales momentum is expected to continue, with transaction volumes likely to surge in months when new projects are launched. Upcoming new launches in the next few months include The Arden at Phoenix Road, AMO Residence at Ang Mo Kio Avenue 1, Lentor Modern at Lentor Central, and Sceneca Residence at Tanah Merah Kechil Link. With the inventory of unsold new private homes in the OCR at a record low, potential buyers will have more options as more OCR projects are progressively launched. However, driven by rising inflation, further interest rate hikes, and pessimistic sentiment about global economic growth, we remain vigilant about potential downside risks to property sales.
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