These 3 properties bolstered Singapore’s impressive home sales in Q1
Over 42% of the 3,376 units sold during the quarter were from these properties.
The strong performance in the residential market has further shored up homebuyers’ confidence an dtak-p of new launches. According to CBRE, preliminary estimates for new home sales volume for Q1 2021 came to 3,376 units, which was 57.1% higher than the same period last year. This was bolstered by the sales of Normanton Park (728 units), Midtown Modern (362 units), and The Reef at King’s Dock (343 units), which were all newly launched this quarter. Q1 2021’s performance also indicated strong demand for high-end homes among local homebuyers.
According to URA’s flash estimates, private residential property prices rose in Q1 2021 for the fourth consecutive quarter, driven by increasing buyers’ confidence, pent-up demand and the low interest rate environment. It grew by another 2.9% q-o-q in Q1 2021, after a 2.1% q-o-q increase in the previous quarter. CBRE notes that this was mainly attributed to the Rest of Central Region (RCR), which rose by 6.1% q-o-q in Q1 2021, a bigger q-o-q increase than the 4.4% registered in Q4 2020. Transactions at The Reef at King’s Dock (median unit price of $2,257 psf) were likely to have contributed to the higher psf prices registered in the RCR. In addition, there was healthy take-up from earlier launches in the suburban market, which signifies resilient demand from upgraders.
Here’s more from CBRE:
To date, private property prices have increased by 6.2% since Q1 2020. This also raises the possibility that more cooling measures could be rolled out. At this pace, it is likely to exceed the government’s GDP growth forecast of 4-6%, while the launch of some upcoming projects at higher psf pricing might continue to push the price index higher.
Although these projects are predominantly located in the Core Central Region (CCR) and RCR locations, smaller sized units which tend to have an affordable price quantum will still be attractive and palatable investments.
Barring any unforeseen circumstances, CBRE Research expects new home sales to fall within the region of 9,000 to 10,000 units for 2021. In the longer term, the potential reopening of borders will also bring about the return of foreign investors to the residential market.