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Sales of luxury condo rose 72% in Q1 despite market uncertainties

·3-min read

OrangeTee & Tie attributed the stellar sales to the new sale segment where 554 new luxury condominiums were sold in Q1 2020.

Singapore’s luxury home segment defied the odds of the current market uncertainties, with sales of non-landed luxury homes surging 72% year-on-year to 965 units in the first quarter of 2020, revealed an OrangeTee & Tie report.

On a quarterly basis, sales of luxury homes climbed 7.1% from the 901 units shifted in Q4 2019.

OrangeTee & Tie attributed the stellar sales to the new sale segment where 554 new luxury condominiums were sold in Q1 2020.

The M, for instance, moved 387 units while Leedon Green sold 41 units. Sales at several completed projects also picked up with Marina One Residences shifting 71 units at an average price of $2,331 per sq ft (psf), D’Leedon transacted 16 units at $1,608 psf and 8 Saint Thomas transacted 10 units at $3,126 psf.

The report noted that the average price of non-landed resale luxury homes “held relatively steady at $2,020 psf while non-landed new homes in Core Central Region (CCR) was $2,540 psf in Q1 2020”.

However, it revealed that the proportion of luxury homes sold at a lower price quantum increased during the period under review. Specifically, about 80.5% were transacted below $3 million in Q1 2020, up from 73.9% in Q4 2019.

Over at the mid-tier segment, non-landed sales volume within the Rest of Central Region (RCR) fell 18.3% quarter-on-quarter to 1,196 units in Q1 2020.

“The sales decline could be attributed to a dearth of new launches and impact of the pandemic,” said OrangeTee & Tie.

The average price of resale condominiums dropped 1% quarter-on-quarter to $1,834 psf. Prices of resale non-landed homes also declined 2.6% to $1,370 psf.

“Despite the price fall, the proportion of non-landed homes by unit size range remained similar to that of the preceding quarter. Last quarter, 532 or 44.4% of non-landed home sales in RCR were below 800 sq ft.”

Meanwhile, the average price of resale mass-market condominiums held firm at $1,042 psf in Q1 2020. However, the average price of new non-landed homes within the Outside Central Region (OCR) slipped 4.8% to $1,459 psf.

In Q1 2020, the sales volume of mass-market non-landed homes dropped 23.5% to 799 units on the back of fewer new launches as well as the effects of the Covid-19 pandemic. Resale non-landed homes also declined 16% to 712 units during the quarter under review.

Despite this, some mass-market new projects registered healthy sales in Q1. The best-selling projects from this segment include Treasure at Tampines, which sold 216 units, as well as Parc Clematis and Parc Botannia, which transacted 93 units and 72 units, respectively.

Other projects such as The Garden Residences, Affinity at Serangoon, Whistler Grand, The Florence Residences and Riverfront Residences sold over 40 units.

Looking ahead, OrangeTee & Tie expects private home prices to drop by up to 4% for the full year should the pandemic persist.

“Around 14,500 to 16,800 private homes could be transacted this year, of which new home sales may constitute around 7,500 to 8,500 units,” it said.

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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg