Andy January 11 2022

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New private home sales tumble 58% in December on property cooling measures

Singapore new private residential sales took a beating in the final month of 2021. The new home sales plunged 58% in December.

Based on URA caveats lodged in December, it is estimated that property developers sold 643 residential units, excluding executive condominiums (ECs). That is a significant 58.4% reduction from the 1,547 units sold in November. 

ERA Associate Division Director, Andy Chia, attributed the plunge in sales volume to the Singapore property cooling measures that took effect on 16 December coupled with the year end holiday season.

The latest property curbs dealt a severe blow to investors whom are seeking to purchase a second residential property in Singapore. 

A Singaporean buying a second home will need to pay Additional Buyer Stamp Duty (ABSD) of 17% instead of 12% previously. 

A foreigner buying their first or subsequent house must pay ABSD of 30% now. It is equivalent to $300,000 stamp duty for a million dollar property.

"Many potential home buyers are waiting at the sidelines so I am hopeful that the property developers will provide a 3 to 5 per cent discount very soon," Chia said.

December is relatively a lull period for the real estate market according to URA statistics in the past decade. 

Which region is popular?

The rest of central region (RCR) or city fringe accounted 44.9 per cent of the sales volume.

The outside central region (OCR) took up 34.2 per cent of the new sales.

The core central region (CCR) was only 20.8 per cent.

Quantum and Price Sensitivity

Following the new cooling measures, the Total Debt Servicing Ratio has become 55 per cent which typically affects your mortgage loan for luxury home properties that is in excess of S$3 million.

The new residential properties that were sold between S$1.5 million to S$2 million took up 32.7 per cent of December's volume of landed and non-landed properties.

Whereas homes in the more affordable quantum of S$1 million to S$1.5 million contributed 26.6 per cent of the volume.

Buyers Profile

Singaporeans made up the vast majority of the buyers for new private homes in December whereas permanent residents (PR) and foreigners accounted for 12.6% and 4.2% respectively.

What are the Popular New Launch Projects?

Including ECs, the top-performing project by sales volume last month was

Normanton Park, which is in District 05 - Buona Vista / West Coast located next to Kent Ridge Park. The project's developer, Kingsford Huray Development, sold 73 units at a median price of S$1,831 per square foot (psf). 

The next best-seller in December is Mori a freehold condo along Guillemard Road in District 14, where 71 units were sold at a median price of S$1,869. The developer is Roxy Pacific, a public listed company in Singapore. 

Property Market Outlook for 2022

Belgravia Ace, a freehold strata landed property in Ang Mo Kio Avenue will be launched for sale in January 2022.

The indicative selling price for a terrace strata house is S$3.8 million which is approximately S$1,050 PSF.

Being the first new launch project this year, its sales results will be scrutinized by the property analysts. 

Belgravia Ace is priced at a premium so it is not expected to be a sell-out, Chia added.

Belgravia Villas was launched at a median price of $850 PSF in 2014.