New unit prices rose despite a slowing local economy — as developers release projects from en bloc sites acquired during 2017 to mid-2018, these new unit prices reflected the high land prices paid during that period. Consequently, the proportion of units priced below $1m fell from 37.0 to 24.0 per cent of total new unit sales in Q2 2019. In addition, the higher prices mirrored the increased average unit size as well as an increased preference for larger new units.
With the number of new project launches expected to increase in H2 2019 amid strong headwinds from ongoing global trade tensions and uncertainties, demand for non-landed units from foreign buyers may pick up as Singapore is often viewed as an investment safe haven with a stable government policies and strong fiscal position.
The outlook for H2 2019 remains cautiously optimistic with new sales volume likely to range between 8,000 to 10,000 units in 2019, while prices are largely expected to remain stable with an upside of up to 3.0 per cent.
Read the full Housing Report here.