The demand for private homes in Singapore is still relatively stable despite global trade and geopolitical uncertainties, Colliers International says.

Figures released by the Urban Redevelopment Authority showed that developers sold 1,147 new private homes (excl. Executive Condos) in November 2019 - a rise of 23.2 per cent from the restated 931 units transacted in the previous month.

On a year-on-year basis, new home sales declined 4.5 per cent from the 1,201 units shifted in November 2018, where there were eight new launches signalled a recovery from the market cooling measures in July 2018.

At a glance:

• Figures released by the Urban Redevelopment Authority showed that developers sold 1,147 new private homes (excl. Executive Condos) in November 2019 - a rise of 23.2 per cent from the restated 931 units transacted in the previous month.
• On a year-on-year basis, new home sales declined 4.5 per cent from the 1,201 units shifted in November 2018.
• Colliers Research predicts that new home sales in 2019 will likely reach 10,000 units, surpassing the 8,795 units (excl. ECs) transacted last year.

Colliers International Head of Research for Singapore, Tricia Song, said the combination of a tight labour market, favourable interest rate environment, and relatively healthy household balance sheet had allowed demand to remain consistent.

"In November, two of the top three best-sellers were mixed developments which show good demand for such projects," she said.

"Value-conscious home buyers continue to dip into earlier-launched projects which now look attractive after benchmark prices of latter launches.

Source: Colliers International

"We expect prices to continue to stabilise and rise by 2.5 per cent for the full year 2019, with prices likely be kept in check by the economic slowdown and ample pipeline.

"Colliers Research predicts that new home sales in 2019 will likely reach 10,000 units, surpassing the 8,795 units (excl. ECs) transacted last year."

The increase in private home sales throughout November was contrasted with a decline in launches, which fell by 17 per cent, according to data from the URA.

Ms Song said it had otherwise been a "bumper" year for launches which are expected to decrease in 2020, but with improved uptake.

"Takeup rates have been mixed in 2019, but we expect takeup to gradually improve over the next few years as the launch pipeline has peaked," she said.

"In 2020, we expect fewer new private residential launches of about 41 projects with 9,000 units in total, and barring a worse-than-expected economic slowdown, takeup should be similar to 2019 at 9,800 units.

"Prospective buyers would likely dip into earlier launches for choices."

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