New Singapore private home sales surge to 998 in June, more than double May’s volume

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DEVELOPERS in Singapore sold 998 new private homes in June, 105 percent more than May’s 486, on repressed interest and an increase in remote buying as show galleries revived.

Despite the surge, buyers are choosing to remain judicious, with reasonable homes making up more than 90 percent of units sold.

The transactions in June were the highest sales for the month in seven years, while the quantity of remote buyers rose to the highest in 10 months, according to Christine Sun, OrangeTee and Tie’s head of research and consultancy.

The previous June high was in 2013 with 1,806 units.

The 105 percent bounce in June from May was also higher than the 75.5 percent month-on-month (m-o-m) increase seen in May, information from the Urban Redevelopment Authority (URA) showed on Wednesday. June’s 998 sales were also 22 percent higher than the 821 units transacted a year back.

Commonly, June is slow because it’s the month-long mid-year school break when families excursion overseas yet this year was the first occasion when that individuals couldn’t make a trip due to Covid-19 restrictions. The usual mid-year occasion period was moved to May because of the “electrical switch”, with schools reopening in June.

Last month saw 169 purchases by foreigners, comprised of 120 perpetual residents (PRs) and 49 non-PRs, said Ms Sun, who crunched the information. The previous high was in August 2019 with 188 remote buyers.

The economy revived last month in phases, with show galleries welcoming back visitors on June 19 with social-distancing measures.

The lockdown or “electrical switch” lasted from April 7 to June 1.

On the increase in the quantity of outside buyers, Ms Sun said numerous foreigners purchased properties last month as the growing full scale financial uncertainties have driven overseas investors to seek shelter for safe-safe house assets in the Republic.

“Despite the fact that showflats revived last month, we have observed more outside buyers purchasing private homes distantly because of the fringe lockdowns or travel restrictions imposed in numerous countries. This is in stark contrast to the past where numerous foreigners ordinarily purchase a unit simply in the wake of visiting a showflat,” she said.

“As of now, numerous foreigners snap up homes in Singapore based on their trust in our legitimate system, nature of finishes, and investment capability of properties.

“We may anticipate that more foreigners should get private homes in the coming months as interest rates are relied upon to remain low and abundant liquidity is flowing into the asset markets because of the massive quantitative-easing programs propelled far and wide,” Ms Sun included.

Buyers remained to a great extent judicious however, with 919 moderate homes sold out of the total 998 transactions – comprising 489 in outside focal locale (OCR), and 430 in rest of focal area (RCR). There were 79 units in the posh center focal area (CCR).

In May, sales for OCR, RCR and CCR were 256, 189, and 41 respectively.

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