Huttons’ comments on Jul 2022 developer’s sales | Huttons Group

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Huttons’ comments on Jul 2022 developer’s sales

Huttons Research
Developers launched 402 units and sold 834 units in July. Sales in July rebounded by 70.9% month-on-month but were 47.9% lower year-on-year.
The Core Central Region (CCR) saw 185 units sold while the RCR moved 164 units and the OCR 485 units. The astounding sale results for AMO Residence in the Outside Central Region was the key reason monthly sales shot up by 70.9% and sales in the OCR jumped to 485 units in July.
The market is hungry for more launches. The number of units sold monthly has been higher than the number of units launched since Feb 2021.
The number of mass market homes priced $2 million and above is on the rise. 40.6% of the transactions in the OCR are $2 million and above in July 2022 compared to a low of 9.9% in Aug 2021. During this period, the average size of $2 million homes in the OCR decreased from 1,447 sq ft in Jan 2021 to 1,222 sq ft in July 2022. However, the average price per sq ft increased from $1,579 psf in Jan 2021 to $2,066 psf in July 2022.
With $2,000 psf emerging as the average price for mass market homes, the proportion of such homes is expected to rise.
Figure 1: Transactions $2 million and above in OCR
Source: URA, Huttons Research as of 15 Aug 2022
Table 1: Top 10 Projects by Sales in Jul 2022
Source: URA, Huttons Research as of 15 Aug 2022

The proportion of purchases by foreigners eased to 5.4% in July 2022 as the launch of AMO Residence in the OCR attracted many HDB upgraders who were Singaporeans. This also resulted in a rise in the proportion of purchases by Singaporeans going up to 85.1%. Projects in the CCR and RCR continued to attract interest from foreigners. For 2022, the level of purchases by foreigners should be around 5%, similar to pre-Covid levels.
Figure 2: Proportion of Purchase by Foreigners 
Source: URA, Huttons Research as of 15 Aug 2022
Table 2: Top 5 Projects with sales to foreigners in July 2022
Source: URA, Huttons Research as of 15 Aug 2022
19.7% of the transactions in Jul are priced below $1.5 million, 31% are between $1.5 million to $2 million and 49.3% above $2 million. 
Table 3: Purchases by Residential Status and Price Range in July
Source: URA, Huttons Research as of 15 Aug 2022
It will be a quiet Aug as developers hold back on launches during the Lunar Seventh Month. The number of units sold is estimated to be around June’s sales volume. Launch activity will pick up rapidly in September with a number of launches – Enchanté in CCR, Lentor Modern and Sky Eden@Bedok, both in the OCR.
As the OCR has only an estimated 1,462 unsold units, Lentor Modern and Sky Eden@Bedok should see healthy interest.
Developer sales are forecasted to be around 9,000 units and private home prices are expected to increase up to 8% in 2022.