COMMENTARY 25 May 2021
Nicholas Mak
| 15 November 2021
Head of Department, Research & Consultancy
Residential property sales
ERA Singapore
ERA APAC Centre
remained robust despite
450 Lorong 6 Toa Payoh
Singapore 319394
Tel: (65) 6226 2000
Fax: (65) 6220 0066
COVID-19 restrictions
Residential property sales remained robust
despite COVID-19 restrictions
Introduction
Although real estate developers in Singapore did not officially launch any new
residential projects for sale in October 2021, they still released 661 private housing
units in that month, according to URA figures. No new Executive Condominium (EC)
unit or project was released last month as well.
The 661 private housing units released last month from projects that were launched
before October 2021 were three times the 210 units released in this September.
Developers would usually release the units in their bigger projects gradually
depending on the demand. The increase in the number of units released last month
was one of the indications that homebuying demand remained robust despite the
COVID-19 restrictions that were in place in October.
Figure 1 | Number of new homes launched
Source: URA, ERA Research & Consultancy
Residential property primary market sales
Another indication of the strong homebuying demand was the increase in the
number of units sold in the primary market in October. Property developers sold a
total of 909 private housing units (excluding EC units) last month, 9.0% more than
the sales in September 2021.
COMMENTARY
Table 1 | Residential property primary market sales
CCR RCR OCR Total private Total new
EC Primary
Primary Primary Primary New sale sales,
market
market market market (exclude including
sales
sales sales sales EC) EC
Aug-21 152 343 720 1,215 107 1,322
Sep-21 168 310 356 834 462 1,296
Oct-21 281 281 347 909 136 1,045
Source: URA, ERA Research & Consultancy
At the same time, 136 EC units were sold in the primary market last month. The
primary market EC sales in September was higher because Parc Greenwich, a 496-
unit EC development was launched in that month. Without any new EC project
launched in October, the EC sales returned to the usual monthly range of 70 to 160
units last month.
Prime residential property sales increased in October
The prime Core Central Region (CCR) primary market sales usually occupies the
smallest market share among the three private property market segments in
Singapore. Typically, fewer than 200 units in the CCR were sold each month.
However, in the first ten months of 2021, the monthly number of CCR units sold
exceeded 200 units in four of the ten months, namely March, April, June and
October.
Some developers of CCR residential projects are renewing their marketing efforts as
Singapore gradually eases travel restrictions and more foreign buyers could come to
Singapore.
Furthermore, the buyers’ attention could also shift to the CCR projects as the
available stock of unsold units in suburban residential projects gradually decreased.
Property developers sold 281 private housing units in the CCR last month, 67.3%
more than in September. As a result, the market share of the CCR increased from
20.1% in September to 30.9% in the following month. The CCR market share in
October was the same as the market share of the city-fringe Rest of Central Region
(RCR). These two market segments gained their market share at the expense of the
suburban Outside Central Region (OCR) residential projects.
COMMENTARY
Table 2 | Market share of residential property primary market sales in each market
segment
Total private
CCR Primary RCR Primary OCR Primary
New sale
market sales market sales market sales
(exclude EC)
Aug-21 12.5% 28.2% 59.3% 100.0%
Sep-21 20.1% 37.2% 42.7% 100.0%
Oct-21 30.9% 30.9% 38.2% 100.0%
Source: URA, ERA Research & Consultancy
Jervois Mansion, a freehold 130-unit residential development at Jervois Close, was
the best-selling residential project in October with 99 units sold at the median price
of $2,553 psf. Some buyers were drawn to Jervois Mansion was they felt that the
price of Jervois Mansion was attractive for a new freehold property in the prime
residential area of District 10.
Outlook
The upcoming residential projects planned to be released in the last two months of
this year will cover all three market segments. Three of the residential projects lined
up for launches include The Commodore, Canninghill Piers and Cairnhill 16, which are
located in the OCR, RCR and CCR respectively. The Mori, a 137-unit residential
development in the Geylang area is also planned to be launched in 4Q 2021.
Therefore, the supply of newly launched units in November and December will
increase with the launch of these new projects.
Table 3 | New and upcoming residential project launches
Residential Postal
Street name Locality Preview date Booking date
Project district
River Valley
CanningHill Piers 6 CCR 5-16 Nov 2021 20-Nov-21
Road
Cairnhill 16 Cairnhill Rise 9 CCR 13-25 Nov 2021 27-Nov-21
The Commodore Canberra Drive 27 OCR 12-24 Nov 2021 27-Nov-21
Guillemard Starting from12
Mori 14 RCR 4-Dec-21
Road Nov 2021
Source: URA, ERA Research & Consultancy
COMMENTARY
Some potential homebuyers may still be putting their year-end overseas vacation
plans on hold. Although there is a growing number of Vaccinated Travel Lanes (VTL)
between Singapore and other countries recently, the onset of winter is causing
another wave of Covid-19 infections in Europe and other countries in the northern
hemisphere. This could discourage some people from travelling.
In addition, the additional costs and inconveniences of COVID tests and verifications
before each flight to and from the oversea destinations could also deter some people
from taking overseas vacations for the time being.
Therefore, as some homebuyers postpone their long overseas vacations and stay in
Singapore, coupled with the increase in the supply of newly launched residential
projects, the primary market could stay active in the last quarter of this year.
As a result, the primary market sales in 2021 could reach the highest volume since
2013, when 14,948 private housing units were sold by developers then. This year,
property developers could sell between 12,000 and 13,000 private housing units and
about 2,000 EC units, resulting in a new 8-year peak for primary market residential
property sales.
COMMENTARY
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