Private home sales for February kept up their momentum, with 1,196 units changing hands. This figure is down by 19 percent (or some 280 units) from January, when the increase in transactions prompted the Singapore government to come up with more anti-speculative measures.
However, February’s figure still exceeds market expectations. Several analysts earlier estimated sales to range between 800 units to 1,000 units.
Analysts said despite more government measures to cool the property market last month, demand for new homes remains strong.
Based on data released by the Urban Redevelopment Authority (URA), new private homes in the city are still popular.
The Altez at Tanjong Pagar was February’s top performer, with 150 units sold at an average price of more than $1,800 psf. The Waterscape project at Cavenagh Road also received good response, with 82 units transacted.
Overall, 521 units of the total sales were accounted from new homes in the prime district.
Projects in the mass market segment were also popular, with over 560 deals that changed hands in February.
“We’ve seen demand in that area – outside core central region – increase on a month-on-month basis of about 31 percent, so that is quite an unexpected phenomenon. A large part of the demand came from The Estuary and that’s about over 300 units sold out of 400 units being launched,” said Chua Yang Liang, head of Research at Jones Lang LaSalle in Southeast Asia.
According to some market watchers, the buying sentiment remains strong despite the recent anti-speculative property measures by the government.
They said this is due to home buyers that have remained confident about Singapore’s economic prospects, job security and positive results from the new integrated resorts.
Some analysts reckon that the sales volume in March could see above 1,000 units, which could bring the sales in the first quarter to 4,000 units. This is on the back of quick take-up for new projects like The Vision at West Coast and forthcoming launches at Sentosa Cove.
Higher-value projects could also raise home prices ahead.
“Of late, we have seen how people continue to snap up properties even at record prices,” said Tay Huey Ying, director of Research & Advisory at Colliers International.
“I think if this continues to persist, we could potentially be looking at a property bubble forming because home prices appear to be running ahead of economic fundamentals. And I think the government should continue more demand side measures.”
These include introducing a capital gains tax or polishing current measures.
In February, developers put 1,161 units up for sale. More could be coming because of robust demand, as well as to prevent more market cooling measures, said analysts.