Singapore new private home sales surged 81.3% in May over April's low despite circuit breaker: Knight Frankk

SINGAPORE – New private home sales in May went up 81.3 per cent over April, even as Singapore was entered the second month of its Covid-19 circuit breaker period.

Developers in Singapore sold 484 private homes in May, exceeding April’s sales of 267 homes, according to figures released by Knight Frank Singapore on Wednesday (June 10).

A total of 967 caveats for new private homes were lodged during the circuit breaker period from April 7 to June 1.

Of these, 577 were new sales while 380 were resale transactions and the remaining 10 were sub sales.

This comes even as show flats were closed and in-person property viewing was curbed during the circuit breaker period as strict safe distancing measures were in place.

Mr Leonard Tay, head of research at Knight Frank Singapore, said: “The sales volume of new homes dominated private residential transactions in May. Despite the restrictions on physical interaction, there is life yet for the real estate market.”

Mr Tay said new home buyers have shown “a degree of adjustment and adaptation to the prevailing circumstances” amid a pandemic.

“It could be that many of these new home buyers who sealed the deal in May had already been to the show flats prior to the circuit breaker, and weeks thereafter of staying at home helped in some measure towards a decision-making purchase,” he said.

“It could be that other buyers were confident enough to make a purchase with only the aid of online visuals and information.”

While May new private home sales surged over April, they were still down 49 per cent from a year ago when developers sold 952 units, according to Urban Redevelopment Authority (URA) data.

Overall monthly demand for both new and resold private homes was down in April and May, compared to the first quarter of this year, which accounted for a total of 4,162 caveats – or an estimated monthly average of 1,387 caveats.

Still numbers for May were slightly more promising than April’s. Last month saw 643 transactions, up slightly by 2.6 per cent compared to the 627 in April.

URA is due to release its data on sales and launches of new private homes and executive condominiums next week.

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