New private homes sales up 57.3% in February amid COVID-19 situation

New private homes sales up 57.3% in February amid COVID-19 situation

Sales of new private homes rose in February despite the COVID-19 outbreak.

Developers sold 975 homes – excluding executive condominiums – last month, 57.3 per cent higher than the 620 units sold in the preceding month, data from the Urban Redevelopment Authority (URA) showed on Monday (Mar 16).

This was also 114.3 per cent more than the 455 units sold over the same period last year, making it the second-highest February performance for new private homes sales in eight years, said Chrisitine Sun, head of research and consultancy at OrangeTee and Tie.

Including executive condominiums, 1314 units were sold, a 187.5 per cent increase over the 457 units sold in February 2019 and a 105.3 per cent increase on the 640 homes in January.

February’s sales was led mainly by the sales of 380 units at The M condominium, followed by 324 units at Parc Canberra executive condominium

“Parc Canberra was the first executive condominium launch after the announcement of the higher income ceiling last year,” said PropNex Realty CEO Ismail Gafoor.

COVID-19 IMPACT

Mr Ismail added that the private new home sales segment continues to be “in strong demand” despite the impact of COVID-19 on Singapore’s economy. “This is mainly due to attractive pricing adopted by developers,” he said.

As of Sunday evening, Singapore had a total of 226 COVID-19 infections.

Ms Sun also agreed that sales had performed better than expected given the COVID-19 outbreak and “seasonal lull” during the Chinese New Year period.

“The surge in sales may be attributed to more investors diversifying their portfolios to property investments after the recent stock market rout,” Ms Sun added.

Ms Sun also noted that the number of Singaporean purchases grew strongly last month with 812 non-landed homes excluding executive condominiums bought by Singaporeans.

This was up from the 413 units transacted the month before and 351 units in December 2019.

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