New private home sales rose in May to a ten-month high, which was partly attributed to the high demand at the two new projects that were launched.
According to Urban Redevelopment Authority, there were 1056 sales of new homes in May an increase by 41.2 % from 748 homes sold in April.
This is the strongest performance in monthly sales since last July when 1,655 units were sold.
Analysts think that the high sales could be an indication of stability or tentative recovery for the property market.
Knight Frank Research Head in Singapore, Ms Alice Tan said that the recovery could continue if interest rates do not rise and if the economic growth improves in the 2nd half.
The rise in May sales from 643 units sold in May last year can be attributed to the launch of 2 top selling projects. Toa Payoh’s Gem Residences recorded sales of 312 units at an average price of $1,431 psf while Upper Serangoon’s Stars of Kovan sold 76 units at an average price of $ 1,414 psf.
Other than the new launches, there were brisk sales at existing projects, which show that homebuyers favour projects near MRTs and that are reasonably priced.
(Image from The Edge Property)
The city fringe had more than half the May sales with 582 units, the suburbs had 414 while the central region sold 60 units.
The five months had 3,274 total sales without including ECs, a higher figure compared to the 3,189 transacted at the same period last year.
Although private condominium sales rose, last month saw a low demand for new ECs with 332 units, which is lower than April sales by 39.3%. The ECs that were best sellers in May are The Vales, Bellewaters and The Terrace with each selling 37 to 40 units at an average price of between $788 and $800 per sq ft, followed by The Visionaire and The Brownstone.