“While overall primary sales momentum in 8M2022 has dropped by 45% y-o-y to [around] 5,700 units, average pricing has remained firm despite ongoing weakening macro data points and higher mortgage rates,” write the analysts. “The strong sales momentum will likely result in a further squeeze in supply and drive average pricing higher in 2H2022, albeit at a more modest pace.”
Analysts are positive on Singapore’s residential sector in view of strong new launch sales momentum year-to-date (ytd) with take up rates at around 83% during launch weekends compared to 43%-64% in the past two years.
The Singapore residential market is gearing up for two launches in September – Sky Eden @ Bedok by Frasers Property and Lentor Modern by GuocoLand – which DBS Group Research analysts Derek Tan, Rachel Tan and Tabitha Foo will be watching closely.
