reporter2
10-09-19, 15:34
Condo buyers go for pricier, larger units in Q2
Proportion of new units priced above S$3 million rose to 5%, up from 3% in the first quarter: Edmund Tie
Tue, Sep 10, 2019
VIVIENNE TAY
BIG ticket private homes seemed to be gaining popularity, with the proportion of both new and resale units priced above S$3 million seeing increases, according to a report released on Monday by real estate consultants Edmund Tie.
For the second quarter, new sales were up 30.6 per cent at 2,246 units, from 1,720 units a year ago. The proportion of new units priced above S$3 million rose to 5 per cent with 112 units sold, up from 3 per cent in the first quarter with 52 units sold.
Resale volume also rose 18.2 per cent to 1,966 units, from 1,663 units the previous quarter. The proportion of resale apartments priced above S$3 million rose to 11 per cent with 216 units sold, from the previous quarter's proportion of 8 per cent with 133 units sold.
On the other end of the spectrum, the proportion of new apartments priced under S$1 million fell to 24 per cent of units sold, from 37 per cent in the first quarter.
New units in the higher price ranges, especially those above S$1.5 million, rose to 35 per cent in Q2, from 25 per cent in Q1. They also reflect the increase in average unit size released for sale as well as a greater preference for larger apartments.
Although smaller units - studio to two-bedroom units - formed the majority or 79 per cent of total new sales, there was a shift in preference for larger units in Q2. This saw an increase in proportion of unit sizes ranging from 700 to 1,000 square feet (sq ft) and above 1,500 sq ft.
This was also in line with URA's revision to guidelines on maximum allowable unit dwellings outside the central area which took effect from Jan 17 - increasing the average unit size from 70 square metres to 85 or 100 sq m, depending on location, the report said.
The higher new unit prices from projects released by developers reflect the high land prices paid for en bloc sites acquired in 2017 to mid-2018, Edmund Tie said.
As for resale units under S$1 million, the proportion of units held steady at 24 per cent. The data also suggested that buyers tend to prefer older units due to their larger size and freehold tenure.
Overall, total sales volume amounted to 4,212 units, the highest since the third quarter of 2018 when cooling measures were introduced. This compares with 3,383 units in the first quarter of 2019.
The Urban Redevelopment Authority's non-landed price index grew by 2 per cent quarter-on-quarter in the second quarter, a reversal from a 1.1 per cent drop in the quarter prior.
The number of new projects launched more than doubled to 16 in the second quarter, from six in the first quarter, but the total number of units on offer was much lower at some 2,700 units, compared to 4,900 units in Q1, due to smaller project sizes, the report noted.
The rest of central region (RCR) saw the most launches with nine new projects totalling 1,731 units in the second quarter, compared to four projects offering 326 units in Q1.
Foreign buyers accounted for 6 per cent of non-landed private homes sold in the second quarter, up from 5 per cent in the first quarter. Notably, the proportion of mainland China buyers dropped to a low of 22 per cent in the period, said the report.
While the proportion of Singapore citizens and permanent resident buyers held steady, the proportion of Singapore citizens buying units priced between S$3 million and S$4 million rose to 68 per cent in Q2, from 55 per cent in Q1. However, Singaporean citizens and permanent residents buying units priced above S$4 million fell to 58 per cent, from 61 per cent the previous quarter.
Foreigners were observed to prefer units in the core central region (CCR), with a rise in demand for homes priced above S$4 million in Q2. Singapore citizens and Singapore permanent residents, meanwhile, were more likely to go for less expensive properties in the RCR and outside central region (OCR).
The second quarter's price growth was largely due to the higher selling prices of newly launched projects with strong take-up rates such as Sky Everton and Amber Park. The smallest units for both projects had just exceeded S$1 million.
Edmund Tie said its outlook for the private housing market in the second half of 2019 remains "cautiously optimistic", as it stuck to its forecast of 8,000 to 10,000 in sales of new units for 2019. The agency said prices are largely expected to remain stable with a 3 per cent upside.
Proportion of new units priced above S$3 million rose to 5%, up from 3% in the first quarter: Edmund Tie
Tue, Sep 10, 2019
VIVIENNE TAY
BIG ticket private homes seemed to be gaining popularity, with the proportion of both new and resale units priced above S$3 million seeing increases, according to a report released on Monday by real estate consultants Edmund Tie.
For the second quarter, new sales were up 30.6 per cent at 2,246 units, from 1,720 units a year ago. The proportion of new units priced above S$3 million rose to 5 per cent with 112 units sold, up from 3 per cent in the first quarter with 52 units sold.
Resale volume also rose 18.2 per cent to 1,966 units, from 1,663 units the previous quarter. The proportion of resale apartments priced above S$3 million rose to 11 per cent with 216 units sold, from the previous quarter's proportion of 8 per cent with 133 units sold.
On the other end of the spectrum, the proportion of new apartments priced under S$1 million fell to 24 per cent of units sold, from 37 per cent in the first quarter.
New units in the higher price ranges, especially those above S$1.5 million, rose to 35 per cent in Q2, from 25 per cent in Q1. They also reflect the increase in average unit size released for sale as well as a greater preference for larger apartments.
Although smaller units - studio to two-bedroom units - formed the majority or 79 per cent of total new sales, there was a shift in preference for larger units in Q2. This saw an increase in proportion of unit sizes ranging from 700 to 1,000 square feet (sq ft) and above 1,500 sq ft.
This was also in line with URA's revision to guidelines on maximum allowable unit dwellings outside the central area which took effect from Jan 17 - increasing the average unit size from 70 square metres to 85 or 100 sq m, depending on location, the report said.
The higher new unit prices from projects released by developers reflect the high land prices paid for en bloc sites acquired in 2017 to mid-2018, Edmund Tie said.
As for resale units under S$1 million, the proportion of units held steady at 24 per cent. The data also suggested that buyers tend to prefer older units due to their larger size and freehold tenure.
Overall, total sales volume amounted to 4,212 units, the highest since the third quarter of 2018 when cooling measures were introduced. This compares with 3,383 units in the first quarter of 2019.
The Urban Redevelopment Authority's non-landed price index grew by 2 per cent quarter-on-quarter in the second quarter, a reversal from a 1.1 per cent drop in the quarter prior.
The number of new projects launched more than doubled to 16 in the second quarter, from six in the first quarter, but the total number of units on offer was much lower at some 2,700 units, compared to 4,900 units in Q1, due to smaller project sizes, the report noted.
The rest of central region (RCR) saw the most launches with nine new projects totalling 1,731 units in the second quarter, compared to four projects offering 326 units in Q1.
Foreign buyers accounted for 6 per cent of non-landed private homes sold in the second quarter, up from 5 per cent in the first quarter. Notably, the proportion of mainland China buyers dropped to a low of 22 per cent in the period, said the report.
While the proportion of Singapore citizens and permanent resident buyers held steady, the proportion of Singapore citizens buying units priced between S$3 million and S$4 million rose to 68 per cent in Q2, from 55 per cent in Q1. However, Singaporean citizens and permanent residents buying units priced above S$4 million fell to 58 per cent, from 61 per cent the previous quarter.
Foreigners were observed to prefer units in the core central region (CCR), with a rise in demand for homes priced above S$4 million in Q2. Singapore citizens and Singapore permanent residents, meanwhile, were more likely to go for less expensive properties in the RCR and outside central region (OCR).
The second quarter's price growth was largely due to the higher selling prices of newly launched projects with strong take-up rates such as Sky Everton and Amber Park. The smallest units for both projects had just exceeded S$1 million.
Edmund Tie said its outlook for the private housing market in the second half of 2019 remains "cautiously optimistic", as it stuck to its forecast of 8,000 to 10,000 in sales of new units for 2019. The agency said prices are largely expected to remain stable with a 3 per cent upside.