_Monthly Developer Sales - July 2022
Primary sales in the private residential market in July 2022 surged by 70.9% to 834 units (excluding Executive Condominiums (ECs)), when compared to the 488 units in June 2022. The highlight of the month was without doubt AMO Residence which launched and sold some 98.4% of the total number of units in the project. However, this one project that was the sole launch in July, could not lift the monthly developer sales total to equivalent levels recorded in May where the successful sales of Piccadilly Grand and LIV @ MB claimed the limelight among homebuyers. With the sale of 366 units out of 372 at a median price of S$2,110 psf, AMO Residence established a new benchmark for suburban condominiums in heartland estates.
Clearly, there is a demand for new high-rise homes in the Outside Central Region (OCR), as HDB upgraders and new families who have the financial means harness steadily improving affluence to purchase private homes. The success of Piccadilly Grand, LIV @ MB and the most recent AMO Residence will motivate developers to launch projects sooner-rather-than-later in the current market, where there are more homebuyers looking for new product than there are projects ready for launch. These would include the upcoming Lentor Modern, Sky Eden and Amber Sea.
As at December 2021, there was a total of 9,044 unsold units from the monthly developer sales list. Fast forward seven months, and this total has dwindled to 5,859 units in July 2022, some 35.2% less. There were 185 new sales in the Core Central Region (CCR), 164 transactions in the Rest of Central Region (RCR) and 485 sales in the OCR. Without counting the 366 units that were sold at AMO Residence, just 119 other units were sold in the OCR.
Based on the monthly developer sales data in July, together with the 4,222 new sales registered in H1 2022, about 5,056 primary sales have been accounted for in the first seven months of the year - on track to reach around 8,000 to 9,000 units for the whole of 2022 as originally anticipated at the beginning of the year.
Looking at the remaining five months of the year, quality projects with preferred attributes such as proximity to MRT stations and popular schools, good layout and design, will be able to capture public imagination and the interest of homebuyers, translating into headline news on the launch weekend. With more than a decade of cooling measures that include the Total Debt Servicing Ratio (TDSR), removing speculative elements from the market, the current pace of sales is indicative of the type of demand that has resulted from an increase in household net worth. The overall household net worth of Singapore residents grew by 74.3% to almost S$2.4 trillion in 2021 from about S$1.4 trillion in 2012, signaling the increased purchasing power for private homes over the past decade.
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Monthly Developer Sales - August 2022