Huttons’ comments on May 2021 developer’s sales
Developer launched 514 units for sale and sold 891 units. Sales in May 2021 was 29.7% lower than April 2021 but 83% higher than May last year. The drop in sales is expected as the country went into Phase 2 (Heightened Alert) on 16 May. However this is much better compared to the circuit breaker in April 2020 where sales plunged by almost 60%.
The difference in sales before and after Heightened Alert is not significant. The industry is more prepared for disruption and the usage of virtual viewings might have helped to mitigate the drop in sales. When caveats were analysed based on before and after tighter measures, the split is 55.3% in the period from 1-15 May and 44.7% from 16 to 31 May. Adjusting for the launch of One Bernam and Park Nova, the sales split is 51.2% in the first half of May and 48.8% in the second half of May. However we believe sales in May will be much higher if there were no restrictions on showflat viewings.
After adjusting for launches in April and May, sales in the CCR in May was lower than April by 24.4%. Despite the lower volume in the CCR, the ultra-luxury project, Park Nova saw 12 units sold between $6.8 million and more than $34 million. The biggest penthouse in Park Nova went to an ultra-high net worth individual (UHNWI) for $5,838 psf, besting the recent high of $5,125 psf achieved for a unit in a new project along the Orchard Boulevard area. The appeal of Singapore as one of the best places to be during this pandemic are attracting UHNWIs to move here. There may be more purchases by UHNWIs once the borders are open.
The top ten private residential projects for May 2021 are:
There is no project launch in June as Singapore emerge cautiously from Phase 2 (HA). There is potential for sales in June to match May’s numbers as the relaxed Covid-19 measures of up to 5 in a group may see pent-up demand translate into actual sales.
July 2021 will be a very busy month with several launches lined up – The Watergardens at Canberra, Parc Greenwich, Klimt Cairnhill and Pasir Ris 8.
The Watergardens at Canberra will probably be the most attractively priced project in the OCR in 2021 before repricing takes place in 2022. Parc Greenwich is the first EC launch in the Fernvale area in eight years and pent-up demand is likely to drive sales. Klimt Cairnhill, a luxury project in Prime District 9, Cairnhill area will ride on the positive buying momentum generated in the CCR for the first five months of 2021. Pasir Ris 8, an integrated development in the East will see robust demand as buyers have shown preference for such projects and gravitated towards them over the years.