The URA monthly sales volume for private residential units excluding executive condominiums (ECs) rose by 79 percent month-on-month to 1,909 units in November.
The increase was led by a sharp recovery in sales activity in the Outside Central Region (OCR), which saw a 2.7 percent growth in sales volume to 1,229 units during the month. Including ECs, the number of OCR units would have been higher at 1,404 units though at a slower growth rate of 43 percent month-on-month.
The latest numbers showed an unusual buzz in a traditionally quiet month, particularly after the property cooling measures were announced in August, said Jones Lang LaSalle (JLL). Compared in 2009, island-wide sales volumes rose more than thrice, while OCR transactions grew almost eight times.
The pickup in buying activity is reflected in the prices of caveats lodged. Island-wide median price for non-landed homes under the ‘new sale’ category climbed 13 percent month-on-month after a 9 percent decline in the previous month.
Median price in OCR jumped by 12 percent month-on-month in November, following a 9 percent and 7 percent month-on-month decline in September and October, respectively.
Dr. Chua Yang Liang, Head of Research South East Asia at JLL, said: “Going by the take up rate in the projects, there is a noticeable trend of projects with strong branding and good locations outperforming those by lesser known developers suggesting that buyers may be looking at the upside potential of these projects. Prices of these projects are above $900,000; higher than what we have observed in the previous months suggesting that bargain hunters are not so active at the moment.”
“The low interest rate environment, coupled with the strong urban regenerative plans and overall market demand in these areas, have encouraged more speculative buying into the market. As such, we believe the risk of further policy intervention has been elevated with the soonest policy to be introduced within a month if not by early next year,” added Dr. Chua.