According to figures released on Dec 17 by the Urban Redevelopment Authority (URA), there is healthy demand for new private home sales. 1,341 units were launched from these projects with 1,198 units sold, the highest number after the July cooling measures. The figure is also a 52 per cent jump from the 788 units sold a year earlier, and up 146 per cent from the 487 units booked in October.
CBRE, a leading real estate services company, said “hoping to catch the last gust of wind for 2018, and also in light of expected economic headwinds, developers raised their spinnakers in November to catch as much sales with seven projects launched.”
It added: “As predicted, this brings year-to-date units sold at 8,644, or 81.8% of the volume in 2017. Top selling projects were mass-market projects such as Parc Esta and Whistler Grand, where buyers were likely enticed by their affordable quantum (80.4% of units at Parc Esta and 86.8% of units at Whistler Grand were sold at below $1.5m). Previously launched projects also contributed to this month’s sales; with 52 units from Park Colonial, and 43 units from Stirling Residences.”
JLL, commenting on the URA figures said the new private home sales increase during the month was due to a sharp rise in launches that provided a wide array of projects for buyers to choose from.
It noted that developers launched 1,341 new private homes in November, 564 per cent more than the 202 units launched in October and three times higher than in November last year.
In the first eleven months of the year, developers have launched an estimated 8,655 private residential units and sold an estimated 8,644 units.
Seven new projects were launched in November
|Project||Total (units)||Launched (units)||Sold (units)||Median price (psf)|
|Kent Ridge Hill Residences||548||250||126||$1,715|
|The Woodleigh Residences||667||50||29||$2,002|
Encouraging sales at top selling private residential projects
|Project||Sold (units)||Median price (psf)|
|Kent Ridge Hill Residences||126||$1,715|
Mr Ong Teck Hui, Senior Director of Research & Consultancy at JLL, commented on the new private home sales saying:
“The strong launches and sales take-up of private homes in November is significant as they occurred during the time of the year when market activities usually begin to wind down due to the start of the year-end holidays. They are in fact the strongest monthly launch and sales figures in 2018 (disregarding the 2,239 units launched and 1,724 units sold in July which were an aberration due to the sudden launch of several projects to beat the start of the July cooling measures).”
He added: “As the launch pipeline of units for sale in 2019 is expected to be significant, there is some pressure for developers to launch their projects this year rather than withholding them until next year, which would only worsen the supply crunch. However, developers were reasonably confident that there would be fair response from buyers for them to proceed with their launches.”
JLL said that except for 3 Cuscaden which had a take-up rate of 24 per cent (median price of $3,555 psf), the other five launches of non-landed homes had stronger take-up ranging from 50 per cent to 77 per cent (median prices of $1,352 psf to $2,002 psf).
It noted that the take-up of new private home sales in November is indicative of healthy underlying demand, albeit price-sensitive under present market circumstances.
JLL added: “2018 could end with full year launches of around 9,000 units or about 50 per cent higher than the 6,020 launched last year. New private home sales for 2018 is also estimated at around 9,000 units or about 15 per cent lower than the 10,566 units sold in 2017.
“In 2019, due to the huge launch pipeline of units for sale, 10,000 to 12,000 new private homes could be placed on the market while sales take-up could vary between 8,000 to 10,000 units, depending on market conditions.”
The URA figures on new private home sales exclude executive condominium (EC) units, which are a public-private housing hybrid. CBRE noted that in the EC market, only four units were sold from existing projects as there were no new launches. EC demand is likely to build up as the next EC project at Sumang Walk will only be launched in 2Q 2019.
CBRE said it expects sales momentum to slow down and end the year just north of 9,000 units on the back of limited launches and weak sentiments.
It added that further new private home sales are likely to come from the existing projects as developers try to clear their inventory before a flurry of launches scheduled for 2019 dials up the competition.
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