New private home sales down 31.6% in May

[Poloclub]

Lack of good sites, fatigue, economy concerns or buyers moving toward resale market?

SINGAPORE: New private home sales in Singapore fell 31.6 per cent in May following strong sales in the first four months of the year.

According to data released on Friday by the Urban Redevelopment Authority, 1,702 new private residential units, excluding executive condominiums (ECs), were sold in May, down from April's record 2,487 units sold.

URA said 1,205 new homes were sold in the suburbs, or Outside Central Region, in May.

Meanwhile, 362 new homes were sold in the city fringes, or Rest of Central Region (RCR), and 135 units were sold in the city, or Core Central Region (CCR).

Including ECs, 2,057 units of new homes were sold in May.

- CNA/al

[TheOnlyGayInTheVillage]

Could be partly due to the matured sites bto launches. More solid sites to come in July.

[CCR]

This is a good number... soft landing.... over 2k per month sure attract cooling measures

[ikan bilis]

pls lah.... 1,702 * 12 = 20424 in a year... will break previous record high of 16K+...
anything >1,500 is too hot !!....

[radha08]

build build build buy buy buy....

BASICALLY everything starts with "BBBBBBBB"

[roly8]

can i say it is bullsh*t price

[radha08]

can i say it is bullsh*t price

ya i also say but not the many many many people that que and cheong to buy...

[Leeds]

Not surprising with demand coming down from the high. Most first timers were going after ECs and BTO flats. With apartment for new launches mostly much smaller than EC and BTO flat, it makes no sense for these first timers to go for private flats.

Some first timers who could not qualify for government flats to go for private apartments. With prices at this high, it makes no sense to spend $1m to $1.5m for a private flat equal to the size of a new BTO flat and in the same location. Thus demand from first timers also affected.

This leave the majority of the buyers going for smaller private apartments for investment purposes. Guess, many who wanted to buy MM already bought. So the demand for investment property also affected.

Going forward, demand for new private apartments is going to be slow unless there is a major price correction.

[Poloclub]

Not surprising with demand coming down from the high. Most first timers were going after ECs and BTO flats. With apartment for new launches mostly much smaller than EC and BTO flat, it makes no sense for these first timers to go for private flats.

Some first timers who could not qualify for government flats to go for private apartments. With prices at this high, it makes no sense to spend $1m to $1.5m for a private flat equal to the size of a new BTO flat and in the same location. Thus demand from first timers also affected.

This leave the majority of the buyers going for smaller private apartments for investment purposes. Guess, many who wanted to buy MM already bought. So the demand for investment property also affected.

Going forward, demand for new private apartments is going to be slow unless there is a major price correction.

I actually think that the demand for MM apartment is still growing as more and more anti MM investors are getting converted.

And as price of OCR MM apartment rises, we could be seeing a migration of buyer into resale MM property in the RCR and CCR.

[Leeds]

I actually think that the demand for MM apartment is still growing as more and more anti MM investors are getting converted.

And as price of OCR MM apartment rises, we could be seeing a migration of buyer into resale MM property in the RCR and CCR.

The demand for MM will grow only if property prices remain high. Once there is a price correction, demand will shift to normal apartment unless prices of MM drops significantly to be attractive.

There will come a time when the demand for MM reaches a saturation. It is likely to reach saturation once most singles have purchased theirs. The demand has been strong this far because this group of single (be it younger singles or those above 35 years) has been bared from buying HDB flats all these years. MM is the only alternative for these people now.

[ZeeWee]

The demand for MM will grow only if property prices remain high. Once there is a price correction, demand will shift to normal apartment unless prices of MM drops significantly to be attractive.

There will come a time when the demand for MM reaches a saturation. It is likely to reach saturation once most singles have purchased theirs. The demand has been strong this far because this group of single (be it younger singles or those above 35 years) has been bared from buying HDB flats all these years. MM is the only alternative for these people now.

I see the possibilities of Singles getting more rather than less.. therefore they will be there to absorb the MM units in the market. Also I have seen and talk to older folks/couples who are looking to downgrade into MM units.. so the possibilities of people filling up MM units are endless

Also I still feel demand is high, just that this month the appetite is smaller but doesnt mean there is no demand. Above 1000++ units sold is still a substantial figure

[hyenergix]

The dip in May was probably due to less MM available in mass market condos. Most of the affordable MMs in the region of $600k in these projects are sold based on my showroom visits and propertyguru. Boutique FH/999LH MM supply is drying up with the MM restrictions, leaving mostly those in lower lorong Geylang, which is not very desirable for most investors.

Going forward, large units sales will be sluggish. However there will be a few good launches ahead in my opinion:

This year to watch:
Punngol central (belong to Wee Hur) plot
Hong Leong Garden Shopping Center
Clementi (near the MRT) plot

Next year to watch:
Jurong East (beside the MRT) plot
Bedok (belonging to the FEO) plot

and the Queenstown, Tiong Bahru GLS, Lakeside plots etc

With inflation (unofficially ones that you actually feel) and cut in benefits, I think more expats will gradually shift to city-fringe and it is very likely to snow-ball when more international schools are set up in suburbs and JLD is up in a few years' time.

[Poloclub]

The demand for MM will grow only if property prices remain high. Once there is a price correction, demand will shift to normal apartment unless prices of MM drops significantly to be attractive.

There will come a time when the demand for MM reaches a saturation. It is likely to reach saturation once most singles have purchased theirs. The demand has been strong this far because this group of single (be it younger singles or those above 35 years) has been bared from buying HDB flats all these years. MM is the only alternative for these people now.

You are making the assumption that only singles or HDB upgraders are buying MM. I actually think that people are starting to see value in MM rental potential and more and more private property investors are now starting to jump into MM play. I think as long as LTV remain at 60% and property price and inflation remain high, there will always be demand for MM property.

[TheOnlyGayInTheVillage]

Everybody buy for investment but nobody rents...

[hyenergix]

Everybody buy for investment but nobody rents...

Rental units r in oversupply now.Thx to foreign workers quota. Businesses r sufferring too. I project small n medium mfg shifting to JB soon. Got hit worst will b lower to medium income local workers.

[radha08]

Rental units r in oversupply now.Thx to foreign workers quota. Businesses r sufferring too. I project small n medium mfg shifting to JB soon. Got hit worst will b lower to medium income local workers.

oversupply no issue...just lower rental...sure got people bite...

[TheOnlyGayInTheVillage]

Rental units r in oversupply now.Thx to foreign workers quota. Businesses r sufferring too. I project small n medium mfg shifting to JB soon. Got hit worst will b lower to medium income local workers.

There is light... 30 odd foreign bus drivers just quit en masse.... Yay

[hyenergix]

There is light... 30 odd foreign bus drivers just quit en masse.... Yay

30 less foreigners renting.

[Allthepies]

30 less foreigners renting.

Hdb renting going to be first to get hit

Finally hdb can go back to it's basic purpose, to provide a roof for Singaporeans

Not to be used for speculation and investment.

[lajia]

Hdb renting going to be first to get hit

Finally hdb can go back to it's basic purpose, to provide a roof for Singaporeans

Not to be used for speculation and investment.

U really think hdb first to get hit?? Do u happen to see more angmo in your hdb neighborhood? I heard that a lot of expat also get local terms now a day and they are renting hdb...when it comes to economic crunch, the middle tier will likely be hit most and the least impact would be those high end and hdb...

Without hdb where do u think they likely to stay?? All foreigners so rich? Those foreign workers in some of those telco shops u think they are renting PC? I think one of the basic of hdb is also to provide rental to these large group of ppl first coming here to work...just my opinion.

[TheOnlyGayInTheVillage]

From experience and personal encounters. Those retail OFW typically flat share a hdb. Hdb has alwiz been and will remain the best yielding cheapest asset for locals and PR.