Prime non-landed and landed residential sales are anticipated to decline in the first half of 2022, and more, as a result of a lack of new launches, which contributed to a 64% decline in new home sales in June.
Due to a lack of new launches, private home sales in Singapore fell 64% month-over-month in June, reaching a two-year low. Meanwhile, sales of premium non-landed residential properties decreased 43.7% year-over-year to $1.1 billion in the first half of 2022.
1) New private home sales dropped 64% in June due to a dearth of new launches.
Due to a lack of new releases, new home sales in Singapore fell 64% month-over-month in June.
excluding executive condos, developers sold 488 apartments in June, compared to 1,355 units in May. (ECs).
Beginning in June 2021, annual sales decreased by 44%.
The June transaction numbers increased new home sales in the second quarter of 2022 by 37.2%, to 2,504 units.
This month’s decline is unsurprising and even anticipated, given the lack of new launch projects.
Wong Siew Ying, Head of Research and Content at PropNex Realty, adds, “In addition, the resumption of international travel and the June holidays – when families tend to vacation abroad – may have also contributed to the lackluster market activity.”
Knight Frank reports that the Core Central Region (CCR) has sold more than 200 apartments for three consecutive months, and for the first time since March 2021, the region has sold the most homes.
The Central Region (CCR) sold 206 units, while the Regional Central Region (RCR) and Outside Central Region (OCR) each sold 171 units.
The forthcoming new launches will include Guocoland’s Lentor Hills Residences and TID Residential’s TID Residential.
The Lentor Hills Residences are located in a pleasant neighborhood that is easily accessible. Even though there are numerous amenities, the most important ones are easily accessible. Families can play and work close to their homes because Lentor Hills Residences are conveniently located.
Multiple bus lines serve Lentor Hills Residences, making it simple to get around. Lentor MRT station is relatively close by. It is on the Thomson East coast Line, so it takes only a few minutes to reach the central business district. From there, you can also access Yio Chu Kang Road and major expressways such as the BKE, CTE, and PIE.
The proximity of hawker centers, supermarkets, restaurants, and shopping malls to Lentor Hills Residences makes life easier for its residents. Imagine having to live a few steps away from the renowned Mayflower Market and Food Centre and conduct all of your shopping at the Lentor Shopping Centre.
2) Sales of luxury condominiums and single-family homes are declining in the first half of 2022.
Knight Frank reported that sales of luxury non-landed residential properties decreased by 43.7% to $1.1 billion and 125 units in the first half of 2022, compared to the second half of 2021.
In Q1 2022, the value of sales decreased by 50.6% quarter-over-quarter, but rebounded by 29.4% quarter-over-quarter in Q2 2022, as investors sought safe havens and international interest returned as borders were reopened.
According to the PropertyGuru Consumer Sentiment Study H2 2021, luxury property demand is continuing to rise, with as many as 32% of millennials planning to purchase a luxury property in the future.
In a similar vein, Knight Frank anticipates that demand for luxury non-landed residences, particularly larger, fully-furnished units suitable for immediate occupancy, will remain high in 2022 despite an increase in international travel.
In the first half of 2022, the value of land-based homes decreased by 46.9%, from $5.4 billion in the second half of 2021 to $2.9 billion.
As a result, house prices on the market for landed homes are expected to increase by roughly 10% in 2022.
3) New SERS relocation options There are not many takers
Ang Mo Kio Blocks 562-563, 564-565 SERS flats
The Selective En bloc Redevelopment program of the Ang Mo Kio Housing and Development Board has selected blocks 562, 563, 564, and 565. Google Maps is the originating source.
Despite the fact that the government’s two new rehousing options for Selective En bloc Redevelopment Scheme (SERS) owners are free of charge, it appears that there are few takers.
The new options include a reduced 50-year lease for owners who are at least 45 years old at the time the SERS announcement is made, as well as a lease buyback program for seniors living in existing apartments.
According to the Straits Times, 23 of the 30 Ang Mo Kio residents surveyed desired a new 99-year lease, while two opted for a 50-year lease and five were unsure.
Given the uncertainty awaiting those who sign the shorter 50-year lease, property analysts were not surprised that the majority of residents, including seniors, preferred the new 99-year lease.
Professor Sing Tien Foo, director of the Institute of Real Estate and Urban Studies at the National University of Singapore (NUS), emphasized the difficulty of estimating the market value of these 50-year flats, which will be available for resale only after 10 years.
Until recently, young buyers had a preference for older HDB flats in the hopes of being selected for SERS.
4) The URA grants the Lakepoint Condominium permission to eliminate height restrictions.
The marketing agency for Lakepoint Condominium proposed changes to the site’s land planning restrictions after the en bloc procurement closed in June with no bids.