New home sales stabilise; more land on the way

New home sales stabilise; more land on the way

SINGAPORE - Sales of new homes in Singapore are showing signs of stabilising, with transaction volumes holding steady last month and more land being released to meet residential demand this month.

Developers sold 1,455 units last month, 5.4 per cent more than in April, the Urban Redevelopment Authority (URA) said yesterday. This breaks a 12-month streak of double-digit swings in new home sales. It comes despite new launches jumping 31 per cent last month, data showed.

While demand could have been dented in the last week of May by the stock market dip, analysts said steady sales show buyers and developers are adjusting after property curbs in January.

"The steady transaction level could be due to robust demand from genuine first-time home buyers as well as competitive pricing put out by developers to entice potential home buyers," said PropNex chief executive Mohd Ismail.

Ms Chia Siew Chuin, director of research and advisory at Colliers International, noted that demand nearly matched supply last month, with sales close to the 1,521 units launched. "This provides some indication that pent-up demand is gradually being met, while cooling measures are also slowly working through the market," she said.

Including executive condominiums (ECs), the sales tally last month was 1,912 units, up 23.2 per cent from April, URA said. This was largely due to Twin Fountains in Woodlands, which sold 316 units last month at an average price of $741 per sq ft (psf).

While most of the buying demand continued to focus on affordable suburban homes, interest also returned to pricier ones.

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