First published on EdgeProp by Timothy Tay on 22 December 2018
The strong buying momentum last month was supply-led, with seven new projects launched (see Table 1). “Developers are hoping to catch the last gust of wind in 2018 in the light of economic headwinds next year,” says Desmond Sim, CBRE head of research for Singapore and Southeast Asia.
The number of new private homes launched for sale jumped to 1,341 units in November, from 202 units in October. The 830 units sold at new launches accounted for 69% of the total number of new private homes sold (excluding executive condominiums). This is a 146% m-o-m jump and 52% y-o-y increase. “It’s also the highest sales booked for the month of November in five years, since 1,271 units were sold in November 2013,” says Tricia Song, Singapore head of research at Colliers International.
The strong sales performance reflects a genuine underlying demand for “astutely priced and conveniently located projects”, says Song. The take-up for the new launches will also help shore up developers’ confidence in the residential sector in Singapore, she adds, “following the more muted market sentiment after new cooling measures were implemented in July”.
The top-selling project last month was the 1,399-unit Parc Esta. Developer MCL Land released 450 units, of which 348 units (77%) were sold at a median price of $1,699 psf. Whistler Grand was the second-highest-selling project last month, with 219 units, or 73%, of 300 units released, sold at a median price of $1,352 psf. The third-highest-selling project was Kent Ridge Hill Residences, which sold 126 units at a median price of $1,715 psf (see Table 2).
These mass-market projects are highly sought after owing to their affordable absolute prices — of the units sold at Parc Esta and Whistler Grand, 80.4% and 86.8% respectively were priced below $1.5 million each, says CBRE’s Sim.
“Developers have adopted a more cautious stance by pacing the number of units launched to synchronise with what the market can absorb,” says Christine Sun, head of research and consultancy at OrangeTee & Tie. “This avoids an oversupply of units in the market, and helps them test the market acceptance of new launch prices and maintain the launch prices of new units.”