Huttons’ comments on Apr 2022 developer’s sales
Developers launched 397 units and sold 653 units in April. Sales figures in April 2022 were very similar to March 2022 as there was no new launches. Compared to a year ago, sales volume are 48.6% lower as there were four launches in April 2021. In the absence of major launches and festive season, monthly sales have hovered between 650 and 700 units in 2022.
The Core Central Region (CCR) sold 206 units while the RCR moved 289 units and the OCR 158 units. This is the first time in 12 months that sales in the CCR is higher than the Outside Central Region. The low level of unsold stock in the OCR meant that buyers have increased their budget and traded up to the next tier of private housing in the RCR or CCR. This pushed up the proportion of sales $2 million and above to 54.8% in April. This is the highest level seen in at least a year and points to ample liquidity in the market.
Figure 1: Transactions $2 million and above
Table 1: The top ten private residential projects for April 2022 are:
With the relaxation of border controls to allow fully vaccinated travellers to enter Singapore quarantine free, the number of foreigners buying properties jumped from 25 in March 2022 to 59 in April 2022. This pushed up the proportion to 9%. This is the highest level since Jan 2020. The two biggest sales in April by quantum was at Les Maisons Nassim. Based on caveats, two foreigners bought a level 1 and level 3 unit for $49 million and $46 million, respectively. Geopolitical uncertainties may also have a hand in funds flowing to properties in Singapore.
Figure 2: Proportion of Purchase by Foreign Buyers
Table 2: Top 10 Projects with sales to foreigners in April 2022
15.8% of the transactions in April are priced below $1.5 million, 29.4% are between $1.5 million to $2 million and 54.8% above $2 million. 78.5% of purchases are by Singaporeans with PRs and foreigners making up 12.4% and 9%, respectively. This is the first time since Jan 2020 that the proportion of Singaporeans have fallen below 80%.
Table 3: Purchases by Residential Status and Price Range in April
The first EC launch in 2022, North Gaia, sold 166 units at a median price of $1,301 psf in April. 2/3 of the sales at North Gaia went to second timers, reflecting the desire among HDB owners to upgrade. Furthermore quite a number of units sold were larger indicating the need for more space.
Sales in May 2022 may exceed 1,000 units on the back of four launches – Piccadilly Grand, Atlassia, Baywind Residences and LIV @ MB. Piccadilly Grand set the tone for the market for the rest of the year, moving 77% of its 407 units at an average price of about $2,150 psf on launch day.
With prices starting from $2,080 psf, Liv@ MB is priced attractively to sell. East Coast Park and Singapore Sports Hub are also a short distance away, while Marina Bay Financial District is a 12-minute drive from Liv@ MB. There is a myriad of food options from hawker fare to trendy cafes and bakeries in East Coast.
For Atlassia, buyers will be buying into a piece of history as it is a mixed-use development with residential dwelling units and conservation shophouses. It is probably the only project with conservation shophouses in 2022.
Baywind Residences is located in the low-density neighbourhood of Telok Kurau and is less than ten minutes’ walk to the upcoming Marine Terrace MRT station.
Sales volume may be around 9,000 units in 2022. With construction costs spiking, project launches at prices close to $2,000 psf will likely become the norm and overall prices may increase up to 3% in 2022.