Housing Boom Returns: New Home Sales Surge After Cooling Measures
After a dry spell following the December 2021 cooling policies, the Singapore housing market just had a dramatic comeback. In May 2022, 1,356 new homes—excluding executive condos—rolled off the books, setting a six‑month high and sparking a cheer among buyers and developers alike.
Sales Jump: A Nearly Double Increase
- May sales: 1,356 units
- April sales: 660 units
- That’s a whopping 105.5% rise month‑on‑month.
Senior VP of Research and Analytics at OrangeTee & Tie, Christine Sun, attributes the surge to the pent‑up demand that grew after the property curbs kicked in. She points out that the market usually rebounds within 2–6 months after each cooling round.
Past Post‑Cool Kick‑starts
Looking back, we’ll find similar patterns:
- November 2018 – sales jumped by 139.2% just four months after July’s cooling rebound.
- September 2013 – a 63.6% month‑on‑month rise two months after July’s new TDSR rules.
Fresh Projects Make a Splash
Two marquee launches kicked off last month: Piccadilly Grand and Liv @ MB. In their first sales weekend, both powered through a striking 78.1% and 79.2% take‑up rate. According to CBRE’s Head of Research, Tricia Song, this tells us that buyers are still craving quality, well‑located homes—especially now that the market’s “celebrating after a long break” vibe has kicked back in.
Other Projects in the Mix
- Atlassia
- Baywind Residences
Price Brackets: Where the Money’s At
We get a snapshot of what’s hot:
- $1.5‑$2 million homes: 30.5% of all sales.
- $1‑$1.5 million homes: 25.8%.
- $2‑$2.5 million homes: 19.2%.
All in all, the market looks pretty buoyant, though the pace of new listings remains modest. That scarcity, coupled with an undercurrent of buyer confidence, could keep prices humming for the rest of 2022.
More expensive homes sold in the OCR
Hot New Homes Brewing Up in OCR
Hold onto your wallets, folks! Sun’s latest market scoop shows that the newest properties in the Office & Residential (OCR) scene are not just selling—they’re practically flying off the shelves at smash‑ticket prices.
Price Surge Highlights
- Last month, 22 brand‑new condominiums (excluding EC) popped up in OCR and all sold for over $2,200 per square foot. That’s a record high!
- Even more impressive—10 of those units crossed the $2,400 psf threshold.
- All these hotcakes were from the stylish Gazania and Lilium developments.
Why the Frenzy?
It’s all about location, luxury, and that “now or never” buzz. Investors and buyers are biting into these gems because they’re basically saying, “I want to feel that fancy in my own space.”
Takeaway
So, if you’re on the hunt for a place that screams “prime real estate” without the pretentiousness, keep an eye on OCR—because the next big opportunity might just be a corner away!
Increase in foreigners buying new homes
Foreign Buyers Stepping Back into the Property Scene
Even when the government decided to tighten the screws on the Additional Buyer’s Stamp Duty—shifting it from 20% to a sudden 30%%—the market didn’t stay quiet. In May, a fresh wave of overseas shoppers knocked 84 homes off the shelves, which translates to almost a 60% surge over the 53 units bought in April. That’s a win‑win for anyone keeping an eye on the numbers.
Numbers That Talk
- May: 84 foreign‑owned units purchased
- April: 53 foreign‑owned units purchased
- Year‑to‑date first month (January): less than 30 foreign units sold
What’s Happening in the PR Segment?
Not only foreign buyers have a pulse on the market – pronounced permanent residents (PRs) are also making a splash. In May, PRs jump‑started the buying spree, scooping up 142 units compared to the 79 from April. Normal market chatter would say the PR market is simmering, but it’s now boiling.
PR Buying Highlights
- May: 142 units purchased by PRs
- April: 79 units purchased by PRs
Bottom line: the ABSD bump may be a smooth ride for seasoned investors, but the market’s still humming. If you’re looking to dip your toes—or your hand—into the property pool, now might just be the perfect time to put your foot in. Happy hunting!
Sales to remain healthy in the coming months
Housing Market Outlook: New Projects Keep the Momentum Going
Experts predict that the housing market will stay strong in the months ahead, with several fresh launches already on the radar.
Key Projects to Watch
- AMO Residence – a sleek, modern development that’s already catching the eye of both upgraders and first‑time buyers.
- Lentor Modern – its chic design and prime location make it a hot spot for those looking to move up.
Both Song and the industry analysts say that these new properties should attract steady interest, especially from buyers who haven’t felt the chill of recent cooling measures.
Big Moves on the Horizon
Earlier this month, a Chinese investor did something that would make real‑estate agents blush: purchased 20 units in bulk at CanningHill Piers for a staggering $85 million. Talk about a bold play!
What the Numbers Tell Us
CBRE Research (the big data wizards) forecasts a drop in new home sales:
2022’s 13,000+ units are expected to wheel down to 9,000–10,000 when everything normalises.
Prices, on the other hand, might stay steady or climb a modest 3 % in 2022.
Cooling Measures & Their Impact
The recent cooling policies hit investors and foreigners the hardest. The CCR market might feel a bit more pressure, but the overall market’s solid economic fundamentals and a near‑record low inventory of 14,362 units as of Q1 2022 mean prices won’t crash.
Bottom Line
With high occupancy rates and a resilient economy, the housing market won’t go into a freefall – at least for now. Keep an eye on AMO Residence and Lentor Modern as your go‑to spots for fresh listings.
