Start of a Dry Spring Season in the New Home Sales Market brought about by Covid-19

In March 2020, developers sold a total of 660 private residential units, some 32% lower than the 976 units sold in February, but marginally 9% higher than that of January.

“660 units makes it the worst March performance in 5 years,” said Mr Karamjit Singh, CEO of Showsuite Consultancy. “Traditionally, March represents the beginning of the proverbial spring in year that sees a pick-up in new home sales volume following the winter slumber months of Dec to Feb cooled by holidays and festivities”.

There were no major project launches in March, aside from one Executive Condominium (“EC”) project. Out of the 660 non-EC units sold, 208 units were attributed to three projects – Jadescape, Treasure at Tampines and Parc Esta – all within the affordable median price range of $1,355 psf to $1,719 psf. With the exception of only two projects, all the top 20 selling projects in March were priced at a median of below $2,000 psf, as high-end homes were affected by the closures of flights and access to foreign buyers.

“This year’s spring months of March, April and May, the traditional peak sales period before the June school holidays would undoubtedly be dry. April’s numbers would plunge possibly the most owing to the forced shut-down of developers’ show-flats and work-from-home orders as part of the circuit-breaker measures. Only one new project launch is expected to surface in the April numbers – that of Kopar at Newton. That made headlines by being the first to launch its bookings completely remotely, where buyers made their bookings and signed documents from the comfort of their homes,” said Mr Singh.