The residential market is seeing growing demand from local buyers, who accounted for around 76 percent of house sales in Q3 2016, shown a report from Edmund Tie & Co.Home purchases by buyers with HDB addresses, however, fell from 1,792 units in Q2 to 1,480 units in Q3.
The Projects Stats
Lake Grande issued as typically the most popular project among Singaporeans during the quarter, with 441 units sold to local buyers, while The Trilinq (63 units sold) and The Poiz Residences (51 units sold) came in a distant second and third, respectively.
Foreign buyers, on the other hand, accounted for almost 23 percent of home purchases, with the amount of sales to Singapore permanent residents (SPR) falling to 784 units in Q3 from 816 units during the preceding quarter. Purchases by non-permanent residents (NPR) also fell to 240 units from 302 units formerly.
“Mirroring the predilections of Singaporeans, SPR buyers were attracted at Jurong Lakeside District to Lake Grande, registering 59 dwelling acquisitions,” said the report.
“The possibility of Jurong Lakeside District becoming the second CBD additionally attracted NPR buyers, registering 14 purchases in Q3 and highest among the developments.”
Next year will see more challenges as there are mega projects launching like the Grandeur Park Condo, The Artra Condo by Tangs Skyline!
What’s NPR Buyers Buying?
NPR buyers were also brought to developments in prime locations, including Gramercy Park, Sophia Hills and Marina One Homes.
In Q3, houses sales increased by one percent quarter-on-quarter to 4,596 units.
The property consultancy attributed the uptick in trades to the more powerful showing in the resale market, which registered a 15.7 percent quarter-on-quarter increase in sales. Primary home sales dropped 13.2 percent due to slower sales in August.
But despite the escalation in transaction volume, home prices stayed soft as the Urban Redevelopment Authority’s (URA) private residential property price index dropped 1.5 percent quarter-on-quarter in Q3, its 12th straight quarter of decline.
Looking ahead, Edmund Tie & Co expects home prices to ease further, as the city state’s economy continues to face headwinds. The economy grew 0.6 percent year-on-year in Q3, which was lower than anticipated.
“With the economy slowing, the Monetary Authority of Singapore (MAS) cautioned families to consider their housing choices carefully, as retirement adequacy might be compromised should households overstretched their finances,” it said.
However, costs of properties close to transport facilities and conveniences are expected to stay resilient.
“The projects in 2017’s pipeline are very appealing, and are expected to garner much interest. We expect most projects in 2017 to do well, given their alternative locations,” it included.