New private home sales up by 20.7% in March

As the Chinese New Year lull period has passed, developer sales (excluding Executive Condominiums) increased by 20.7 per cent last month. According to URA's sales data, 654 new private homes were sold in March, compared to 542 units sold in February.

Nevertheless, new sales excluding ECs declined by 49.5 per cent year-on-year, according to Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie.

Including ECs, 702 units were sold last month, translating to a 22.3 per cent jump from the 574 units sold in February.

Best-selling new projects

The best-selling new projects last month include Normanton Park, The Florence Residences, Ki Residences at Brookvale, One Pearl Bank, Leedon Green, Avenue South Residence, The Avenir, Provence Residence, Verticus and Amber Park.

Notably, Provence Residence, a new EC launched last May, is 99.3 per cent sold out. According to URA's monthly data, the development has only three unsold units left.

Given the latest round of cooling measures, ECs are expected to draw even higher demand. One of the most anticipated new launches is North Gaia EC, which is slated to launch on 22 April.

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A higher proportion of pricier condos sold

"Despite the cooling measures, pricier condominiums are forming a more significant proportion of transactions," said Sun.

Citing URA's Realis data, she pointed out that 75.9 per cent (1,302 units) of the non-landed transactions (excluding EC) were at least $1.5 million in Q1 2022.

In the same quarter, 41.6 per cent (713 units) were sold for at least $2 million, while 3.1 per cent (53 units) were priced at $5 million and above.

In contrast, 46.2 per cent (1,567 units) of the total new condominiums were sold for at least $1.5 million in Q1 2021. In the same period, transactions of at least $2 million were 17.9 per cent (608 units), and 0.6 per cent (20 units) for those $5 million and above.

Sun explained that the higher price tags were due to more launches in the CCR and RCR in recent months.

"Prices of homes have also been creeping up over the past year, driven by a shortage of supply."

At the same time, the interest rate hike by the Feds may also have prompted more to buy property now.

"The upward adjustment of mortgage rates seems to be spurring more buyers to return to the market. Some on-the-fence buyers plan to lock in home loans before they climb higher, as a steep hike in borrowing rates may price some upgraders out of the market."

This article was first published in 99.co.