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by OrangeTee & Tie Pte Ltd.

Singapore new private home sales plunge 51.7% in October after new curbs

SRX Private Residential Data

SRX Private Residential


SG, 16 Nov 2020

New private home sales in Singapore plunged more than 50 per cent in October amid a dearth of fresh projects and restrictions on the reissue of options to purchase (OTP). Private developers sold 642 units, excluding executive condominiums (ECs), in October, data from URA. This is down 51.7 per cent from September's more than two-year high of 1,329 units, and also a decline of 31.1 per cent compared to the same month last year, when developers sold 932 homes.

Ms Christine Sun, head of research and consultancy at OrangeTee & Tie, noted that "the figures marked the first drop in sales after five consecutive months of growth, and named two factors as the likely causes for the decline: New restrictions on the re-issuing of options to purchase (OTPs) and a lack of launches."

"New curbs on the re-issuing of option to purchase (OTP) seemed to have taken a toll on the market as sales figures slipped more than 50 per cent last month,” Ms Sun added. The new restrictions were implemented by URA in September “to instil greater financial discipline” and ensure that “purchasers commit to a property purchase only when they are ready to exercise the OTP within the validity period”, Ms Sun explained.

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