Singapore private residential transactions smash 9-year record in Q3

Transactions totalled 9,083 units, the highest since the 10,274 units in Q3 2012.

Total private residential transactions in Singapore (including primary and secondary markets) reached 9,083 units, marking a record high since the 10,274 units recorded in Q3 2012. 

According to JLL, this brings the total for the first three quarters of this year to 25,632 units, which is the strongest January to September performance since 29,409 units were sold from 1Q12 to 3Q12. It is possible that around 31,000 to 32,000 private residential units could be sold this year, which would be the highest since 2012 when 37,873 units were sold.

Here’s more from JLL:

Developers launched 2,149 new private home for sales in 3Q21, 8.8% lower than the 2,356 units placed on the market in 2Q21 and, also 43.3% lower y-o-y. Launch activities were impeded by measures imposed to curb the pandemic as well as the surge in infections during the quarter.

3,550 new private homes were sold in 3Q21, 19.7% higher than the 2,966 transacted in 2Q21 and 0.9% higher y-o-y. In the first three quarters of 2021, 10,009 new private homes were sold, just a shade higher than the 9,982 units sold in the whole of last year. This shows the stronger market momentum in 2021 which could be attributed to the economic recovery and longer-term confidence in managing covid-19 and living with it. Take-up of new private homes for 2021 could be in the range of 11,000 to 12,000 units, likely the best annual new home sales performance since 2013, when 14,948 new private residential units were sold.

The secondary market for private homes maintained its momentum in 3Q21, recording 5,533 transactions, a 0.9% rise from the previous quarter and 56.7% higher y-o-y. 15,623 secondary market units were sold from 1Q21 to 3Q21, which is 136.7% higher than the same period last year. A high level of secondary market transactions is an indication of a buoyant market, due to buyers seeking opportunities beyond the primary market.

Price momentum remains gentle

The 1.1% increase in the overall price index in 3Q21 shows that prices are trending gently upwards at a slightly higher pace than the previous quarter. The index has risen 5.3% in the first three quarters and could end the year with a 6% to 7% increase. As this could be in line with the 6% to 7% GDP growth forecasted by the Ministry of Trade and Industry (MTI), cooling measures are unlikely to be imposed in the short-term 

Prices of non-landed homes in Core Central Region (CCR) eased by -0.5% in 3Q21 after rising 1.1% in the previous quarter. Demand slowed in CCR in 3Q21 as total transactions of non-landed homes fell 24.9% from the previous quarter. In the primary market, only one new project (Klimt Cairnhill) was launched in 3Q21 compared to five projects in 2Q21.

Demand for non-landed private homes in Rest of the Central Region (RCR) remained firm in 3Q21, contributing to the moderate rise in prices of 2.6%. New sales accounted for 42% of transactions during the quarter, led by projects such as Normanton Park (median price SGD 1,828 psf), Avenue South Residences (median price SGD 2,254 psf), The Antares (median price SGD 1,790 psf) and Amber Park (median price SGD 2,458 psf). 

Demand for non-landed homes in Outside Central Region strengthened in 3Q21 with total transactions rising 28.3%. However, prices eased marginally by 0.1% due to lack of new launches at firmer prices. The two new launches during the quarter were Pasir Ris 8 (median price SGD 1,627 psf) and The Watergardens at Canberra (median price SGD 1,469 psf).