Sales from the new launch condo have risen 8.2 percent in July 2020 compared to June 2020. This is the third straight month increment during this pandemic which the global economy is not optimistic. The developers manage to sell 1,080 non-landed private units in July 2020 compare to 1,179 units one year ago. A total of 869 new private residential units were launched in July 2020 which is 4.6 percent lesser than last year that launched 911 units.
This sale figure that was released by the Urban Redevelopment Authority (URA) did not include sales from the current 3 new executive condominium (EC), Piermont Grand, Ola, and Parc Canberra that are in the market now. If we include the sale of the executive condominium, the figure will be 1,142 non-landed units. An impressive increment of nearly 11 percent compared to June 2020 and about 27 percent lower than last year’s number (1,557 new units sold).
According to Ms. Wong Siew Ying, head of research at PropNex pointed out that it is not surprising that new launch units are moving as some individuals working in sectors like financial services and tech had performed better than most other fields. They are more confident in their job security or have lump savings. Those individuals will see this as a great opportunity to enter the real estate market when most developers are more sensitive in their pricing.
If we break down the sales by region, new developments located at Outside Central Region (OCR) led the number with 548 sales. Projects in the Rest of Central Region (RCR) or city fringes scored 419 sales and luxury developments in the Core Central Region (CCR) or prime districts hit the sales number of 113.
July 2020 New Launch Sales
Source: URA, ERA Research and Consultancy
Developers are not rushing to launch their new projects as they need more time to strategize their pricing and also implementing safe management measures. In July 2020, Forett at Bukit Timah, a new freehold development in District 21, is the only new launch. They sold 172 units with a median psf of $1,931.
Mr. Wong Xian Yang, Cushman & Wakefield’s associate director of research for Singapore and South-East-Asia disputed the talk of discount by stating that the median selling prices of the five best selling projects in July 2020 were either similar or higher compared to the time of their launch to July 2020. For example, the median price for The Florence Residences was $1,471 psf from the time of launch to July 2020, but it was sold at a median price of $1,559 psf in July 2020.