Mr Lee noted that the number of unsold EC units left in the market is “running very low” with just 221 units based on latest figures.
“Based on this year’s monthly sales rate of 108 EC units, excluding months where there are EC launches, there could be no available EC units left in the market by the time North Gaia in Yishun Close is launched for sale in the first quarter of next year,” he said.
OrangeTee’s Ms Sun noted that the supply of new homes is expected to drop further next year, as fewer collective deals have been successful in the past two years.
“Given the tight housing supply, many buyers are now purchasing for fear that prices may rise further and home choices could be limited in the future,” she said.
PropNex Realty chief executive Ismail Gafoor said there also appear to be renewed interest in new homes in central Singapore with the reopening of borders via the vaccinated travel lanes (VTLs).
“VTLs have facilitated more foreign buyers and overseas investors to have easier access to Singapore’s property market,” he said, noting that foreigners accounted for 6.8 per cent of October new home purchases.
It is one of the highest percentages since 2018 when foreign buyers made up 6.3 per cent of new home sales, he added.
The low-rise project, which is close to the Bishopsgate-Chatsworth good class bungalow (GCB) area, was launched in September.
The second best-selling project for last month was Normanton Park, which sold 73 units at a median price of $1,839 psf. It has consistently been in the top 10 best-selling projects list since its launch in January.
The most expensive purchase last month was a freehold penthouse at Les Maisons Nassim for $75 million, or $6,210 psf, making it “possibly the priciest penthouse by quantum and psf in recent years”, said Mr Lee.
Knight Frank Singapore head of research Leonard Tay noted that while the private residential market has so far “remained healthy with genuine buyers”, there may come a point next year when buyers will eventually resist rising prices.
“When taken together with the expected increase in domestic borrowing rates in the second half of 2022, the current window characterised by brisk strong sales might not last beyond the next 12 months,” he said.
“Therefore, it’s likely that developers with projects on hand will use the next six to nine months to launch and reduce inventory before the post-pandemic recovery fervour tapers off with the anticipated higher mortgage rates.”
At least four residential projects are slated for release in the last two months of the year, and will cover all three market segments, said ERA Realty head of research and consultancy Nicholas Mak.
These are Cairnhill 16 in central Singapore, CanningHill Piers in the city fringe and The Commodore in the suburbs.
The Mori, a 137-unit freehold condo in the Geylang area is also scheduled for launch in the fourth quarter of this year.