15 August 2022, SINGAPORE – Private new home sales rebounded in July as the launch of AMO Residence in Ang Mo Kio helped to lift sales during the month. Developers sold 834 new private homes (ex. Executive Condos) in July, of which 366 units (or about 44%) were transacted at AMO Residence. July’s sales were about 71% higher than the 488 units sold in June, while on a year-on-year basis, new home sales were down by nearly 48% from the high base of 1,602 in July 2021.

Taking in July’s sales, developers have sold 5,056 new private homes (ex. ECs) in the first seven months of 2022, representing a 37% drop from the 8,061 units shifted in the January to July period in 2021. The decline in sales volume was mainly due to the fewer project launches this year.

The Outside Central Region (OCR) led monthly home sales in July, with 485 transactions, up sharply by more than 4 times from 111 units sold in June. AMO Residence was the top-seller in the OCR in July, accounting for about 75% of the sub-market’s transactions – selling 366 units (out of 372 units in the development) at a median price of $2,110 psf. Previously launched projects, The Florence Residences, Parc Clematis, and Ki Residences At Brookvale each sold 17 units during the month, adding to the OCR total.

Meanwhile, new home sales in the Core Central Region (CCR) and Rest of Central Region (RCR) witnessed a month-on-month decline owing to the dearth of new launches in July. Developers sold 185 new units in the CCR, down by 10.2% from June. The best-selling CCR projects in July were Hyll On Holland which sold 28 units at a median price of $2,638 psf, the Perfect Ten which moved 17 units at a median price of $2,932 psf, and Leedon Green where 16 units were transacted at a median price of $2,749 psf.

Over in the RCR, 164 new private homes were sold in July, slightly lower than the 171 units shifted in the previous month. The most popular RCR project was Riviere which sold 27 units at a median price of $2,907 psf. This is followed by Forett At Bukit Timah where 15 units changed hands at a median price of $2,230 psf.

In the EC segment, 12 new units were sold in July, rising from 8 transactions in June. North Gaia was the top-selling EC project, with 10 transactions at a median price of $1,292 psf.

Developers placed 402 new units (ex. ECs) for sale in July – the bulk of which were at AMO Residence - compared with 397 units that was put on the market in the previous month. In the first seven months of 2022, 2,971 new units (ex. ECs) were launched for sale, marking a 59% decline from the same period a year ago.

Ms Wong Siew Ying, Head of Research & Content, PropNex Realty:

“The pent-up demand for mass market homes in Ang Mo Kio from HDB upgraders and owner occupiers has helped to drive the strong 98% take-up at AMO Residence (selling 366 out of 372 units) over its launch weekend on 23 July. Buyers were also attracted to AMO Residence’s convenient location within a mature estate, its proximity to an MRT station and numerous amenities, greenery as well as several good schools. The robust sales at AMO Residence has in turn bumped up overall new home sales in July.

We expect new home sales may be muted in August due to the lack of major new launches amid the Hungry Ghost month, before picking in September. In addition, the number of unsold units from launched projects has run low. Based on the cumulative number of units (ex. ECs) sold at launched projects as reflected in URA’s data, about 89% of the total units in developments that have been put on the market have been sold as at July 2022."

Given the low unsold new private home inventory in the market, upcoming launches in September – such as Sky Eden At Bedok and Lentor Modern - should see healthy buying interest. The two projects in the OCR will feature commercial components and are located close to the MRT station, with Lentor Modern in particular, being connected to the Lentor MRT station. Meanwhile, Sky Eden At Bedok is situated in an amenity-rich area with plenty of retail and F&B options in Bedok Central.

Based on URA Realis caveat data, the median transacted unit price of new private homes in the OCR rose by nearly 19% to $2,088 psf from June to July, likely boosted by sales at AMO Residence. The median prices of new private homes sold in the CCR and RCR were relatively stable at $2,741 psf and $2,323 psf respectively in July (see Table 1), dipping slightly from the previous month.

Meanwhile, Singaporean buyers accounted for 85% of new private home sales (ex. ECs) in July, partly driven by sales at AMO Residence. The caveat data showed that 336 units at AMO Residence were purchased by Singaporeans, while Singapore Permanent Residents and Foreigners took up 24 and 6 units respectively.”