SG residential market perseveres amidst heightened restrictions - CBRE

New home sales from January to August reached 92.8% of last year’s volume. 

Even in the midst of a pandemic, Singapore’s residential market show signs of strength, according to CBRE’s latest market report. 

One of these signs was an estimated 9,265 units sold between January to August 2021, which amounts to 92.8% of the volume sold the previous year. This was due to the strong performances of both Pasir Ris 8 and Watergardens at Canberra with 425 units and 267 units sold, respectively.

URA’s flash estimates, according to the report, also saw private residential property prices increase by 0.9% in Q3 2021, which was similar q-o-q to the 0.8% recorded in Q2 2021. 

The price increase was felt most in the Rest of the Central Region at 2.2% q-o-q. On the other hand, both the Core Central Region and Outside Central Region saw declines by -0.6% and -0.2%, respectively.

Year-to-date, private property prices saw a jump by 5.1%, with it expected to grow between 6% and 8% for the full year.This falls in line with MTI’s upgraded GDP growth forecast of 6% to 7%. 

Intensified competition was also seen as developers made steps to replenish their land panks in the middle of positive market conditions. The land parcel at Lentor Central saw nine bids with Guocoland being awarded, while the site at Tampines Street 62 attracted nine bids with a record price for EC land at $659 psf ppr. Larger mixed-use sites such as Marina View and Jalan Anak Bukit, saw a more subdued bidding interest due to the elevated risks of larger projects. 

CBRE also predicts FY2021 new home sales to hover between 11,000-12,000, if the overall sales momentum continues. An opportunity to boost this further is presented as foreign buying interest could perk up due to the reopening of Singapore’s borders.