Singapore July New Home Sales Up 8.2%

 Developers' private home sales for August are likely to match the level of July thanks to the launch of Forett At Bukit Timah earlier this month, as well as ongoing sales in existing projects on the market.

"We see primary-market sales being driven by a continuation of the pent-up demand that was built up during the 'circuit breaker' partial lockdown," says PropNex CEO Ismail Gafoor.

The 1,080 private homes that developers moved last month was up 8.2 per cent from the 998 units they sold in the previous month, according to data released by the Urban Redevelopment Authority (URA) on Monday.

However, the latest figure is 8.4 per cent lower than the 1,179 units developers sold in July 2019. The above figures exclude executive condominium (EC) units, which are a public-private housing hybrid.

The 1,080 private homes sold in the primary market last month reflects the third consecutive month-on-month increase. It is also the highest monthly sales figure this year and the best showing since the 1,165 units that developers moved last November.

Edmund Tie & Co chief executive Ong Choon Fah commented: "There is asset inflation because of the low interest rate environment.

"The volatility in equity markets puts some people off because of the high risk component. Not everybody knows enough or has courage to go into commodities and precious metals. Whereas real estate is something physical and you can use it or pass it on to the next generation," she said.

Read also: Singapore New Home Sales Hit 7-Year High in June

Knight Frank Singapore research head Leonard Tay noted that despite the current weak economy, those whose jobs or businesses are not at risk and with substantial savings may have found attractive buys in the current market.

Savills Singapore executive director Alan Cheong acknowledged that developers' sales for June and July has been encouraging. "However, this pandemic-induced recession is unique and replete with uncertainties on almost all socio-economic fronts because there are no precedents and textbooks to fall back on for guidance.

Sales at Sengkang Grand Residences has been brisk ever since the easing of Circuit Breaker.