The restrained demand for private Singapore condos in suburban regions improved in the month of July recently. The overall sales lifted median prices at new mass market residential units to a considerable level, mainly at city fringe and prime locations.
This is mainly useful for the AMO Residence sales in Ang Mo Kio Avenue 1, which is the only major residential launch in the previous month in the suburban regions. It is expected to lead to a bulk sale of 485 units or 58.2% of the new homes in the region. Residential spaces in main districts led to 22.2% sales, including 185 units; however, the city fringe on the other side experienced a rise of 19.7% with the sale of 165 units.
Depending upon the data received from URA Realis Caveat, the average price for the new homes in these private suburbs increased by almost 19% with an estimated price of $2,088 per sq ft reported during the month of June.
It was mainly due to the recently sold AMO Residence located at Ang Mo Kio Estate because this site has not seen any condo launches in the past eight years. The sale of around 366 units out of total 372 units available in the AMO Resident with an average price of $2,110 psf led to a new benchmark in the suburban condos.
Along with this, the median prices in the prime district, as well as city fringe areas, are observed to be stable at an estimated price of $2,741 and $2,323 per square foot, respectively. As per the information provided by Urban Redevelopment Authority sold 834 residential units on Monday and the list also included executive condominiums that were sold up to 70.9% in the month of July in comparison to 488 units sold in June. This influence on the market was observed after mid-year holidays at school when interest rate hikes also couldn’t reduce the demands.
July sales were 47.9% lower in comparison to the total 1602 units that were sold during the previous month. During this tenure, there was more than twice the number of new home launches in the market. If we include EC in the list, it shows an estimated rise of 70.6% to the 846 units sold in the previous month which is quite high in comparison to the 496 units sold in June month.
The developers have also launched 402 new condos in the previous month, slightly more than 397 units launched in June. However, the number of new units launched recently is less than 63.6% in comparison to the previous year. Observations state that suburbs may experience a major drop in the supply of new condos. First-time home buyers can also plan their investments in the current market with enhanced optimism.
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