Buyers piling into new condos could push December sales to spike with one prediction that sales could be 70 per cent more than November’s 767.
With economic growth predicted for 2021, prices could go higher and is one reason people buy now,” said Nicholas Mak, ERA Realty, head of research & consultancy.
“Instead of winding down and preparing for the new year, developers are gearing up for more launches and some buyers are hunting for attractive deals,” he said.
December sales of new private homes could hit 1,300 units – including new launches Clavon and Ki Residences – plus another 500 from older projects, said Mr Mak. His projection is more bullish than other consultants’ estimates of up to 1,000 units.
Read also: 2020 New Home Sales Could Top 2019’s
“In any given month with no new launches, developers can sell 400-500 units,” said Mr Mak.
In their respective first weekend launches earlier this month, 640-unit Clavon moved 442 units or about 70 per cent, while 660-unit Ki Residences sold 135.
In total, developers sold 8,791 private residential units in the first 11 months of this year. The primary market is on its way to end the year with a total sale of 10,000 to 10,500 private housing units for the whole of 2020, he said.
Some of his peers estimate full-year 2020 volume at 9,400 to 10,000 units.
Total sales in 2019 was 9,912.
Ismail Gafoor, PropNex chief executive is looking at Clavon and Ki Residences to contribute a combined 600 units to Dec sales, and about 400 units from previously launched projects. He expects full-year sales to exceed 9,700 units.
Wong Siew Ying, PropNex head of research said while new launches boosted home sales in November, it is worth noting that projects which were previously launched also continued to sell units at a steady pace: about 70 per cent (or 540 units) of November’s 767 sales were from projects that were already on the market.
“Buyers likely took time to evaluate prices of various developments and returned to pick up properties in projects that they felt offered them the best value for their budget,” said Ms Wong.
Based on Realis data, the top three best-selling projects in the first 11 months of 2020 were all mega developments launched between 2018 and 2019: Treasure At Tampines; Parc Clematis; and Jadescape, she said.
The overall take-up rate for the three projects is now 74 per cent, 68 per cent, and 88 per cent, respectively.
Other large developments such as Sengkang Grand Residences, The Florence Residences (66 per cent sold) and Parc Esta (99 per cent sold) also performed well.
Christine Sun, OrangeTee & Tie’s head of research & consultancy estimated 650 to 750 sales in December.
“This may bring the total tally to be around 9,400 to 9,600 units for 2020. Even if adjustments were to be made to take into account any aborted sales, the final sales figure for 2020 will still be slightly below the 9,912 units sold in 2019,” said Ms Sun.
On buyers’ confidence, Mr Mak said life seemed to be returning to normal, citing crowds at malls and supermarkets.
“The difference between now and pre-Covid is that people are wearing masks,” he said.
The economy appears on track to shrink 6 per cent in 2020, although unemployment could rise further by year-end, according to private-sector economists polled by the Monetary Authority of Singapore in the latest quarterly survey.
GDP, however, is expected to recover by 2021 with 5.5 per cent growth, said the economists.
More job losses are likely as assistance and budgetary measures aim at propping up companies are wound down.
But, said Mr Mak: “the government would likely withdraw the budgetary assistance when the economy is on a firm footing.
“After all, the government will be announcing Budget 2021 in the coming February. Hence, they could adjust or extend certain assistance to certain industries if necessary.”