Tag Archives: new private home sales

Developer sales down almost 23% from year ago

The best-selling project in February was The Panorama in Ang Mo Kio.

New private home sales in Singapore fell by 22.8 percent to 301 units in February 2016, from 390 units in the same period last year, according to data released by the Urban Redevelopment Authority (URA) on Tuesday, 15 March.

On a monthly basis, the sales volume fell by 6.8 percent from the 323 units sold in January 2016, even though new launches surged 31.4 percent to 209 units from 159 units previously.

According to JLL, the “slower developer sales were expected due to the Lunar New Year lull and the continuation of the volatility in the stock market from the previous month”.

By location, sales in the Core Central Region (CCR) fell to 25 units in February, just shy of the 26 units sold in the previous month, and the 30 units sold a year ago.

In the Rest of Central Region (RCR), transaction levels edged up to 82 units from 81 units in January 2016. But compared to the 185 units sold a year ago, this area witnessed the largest year-on-year decline of 56 percent.

Meanwhile, developers sold 194 units in the Outside Central Region (OCR). While this translates to a 10 percent drop from the 216 units moved in the month before, it is an 11 percent improvement from the 175 units sold in February 2015.

According to PropNex Realty, properties in the OCR accounted for 64 percent of total sales by developers, while those in the CCR and RCR made up nine percent and 27 percent respectively.

The best-selling private residential projects last month were The Panorama, where 18 units were sold at a median price of $1,211 psf, followed by Kingsford Waterbay and Principal Garden, which moved 18 and 16 units at median prices of $1,127 psf and $1,612 psf, respectively.

Looking ahead, new private home sales could fall by around 10 to 15 percent year-on-year to between 1,000 and 1,200 units in Q1 2016, the lowest level seen for the past three years, said Mohamed Ismail, CEO of PropNex.

Nevertheless, transaction volume could rebound in March due to the fairly good performance of two newly launched developments, Cairnhill Nine and The Wisteria.

For the whole of 2016, private home sales are expected to remain weak at around 8,000 units, as long as the property cooling measures remain.

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Home buying momentum remains despite slower sales

Sales of new private homes in Singapore fell 16 percent to 322 units in January this year from the 384 units sold in December 2015, according to latest data from the Urban Redevelopment Authority (URA).

Including executive condominiums (ECs), developers sold 478 units in January, down from 508 units previously.

Year-on-year, developer sales (excluding ECs) dropped 14 percent from the 376 units sold in January 2015.

Despite the drop in sales, analysts believe that there continues to be traction in the market.

“There is still a momentum that’s underpinned by genuine buyers looking to buy a home for owner-occupation. Buyers are steadily picking up previously launched projects – both private homes and ECs,” said CBRE’s Desmond Sim, Head of Research Singapore & Southeast Asia.

“Despite the fact that there have been no new EC launches for the past three months, the market registered EC sales of an average of 155 units. Developers have been drip feeding the private home market with units of previously launched projects.”

The top-selling private residential projects in January were The Poiz Residences, Kingsford Hillview Peak, Sims Urban Oasis, Botanique at Bartley and The Panorama, revealed JLL, which attributed their better sales performance to their proximity to MRT stations and amenities.

For ECs, the better performing projects were The Amore, CDL’s The Brownstone, and The Vales.

Looking ahead, Ong Teck Hui, National Director, Research & Consultancy at JLL, reckons that the biggest immediate threat to stability in the residential property sector is the volatility in the stock market.

“As the volatility continues, a soft landing for the private home market in 2016 appears less likely. Buyers would become more cautious and developers would be less confident in launching new projects.”

He noted that the correlation between the stock market and the residential market can be significant, as seen during the last global financial crisis (GFC) when the stock market plunged 62 percent between October 2007 and March 2009, and developer sales dropped 71 percent to 4,264 units in 2008 from 14,811 units in 2007.

“While current financial market conditions are considered less severe than the GFC, continued volatility in the stock market is still likely to have an adverse impact on the residential market,” added Ong.