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News Release

Urban Redevelopment Authority Private Residential Property Transactions for December 2011

Sales activity falls across all regions


SINGAPORE, 16 January 2012 – The URA monthly sales volume for private residential units (excluding executive condominiums (ECs)) decreased by 63% m-o-m in December 2011 to 632 units island-wide. Sales fell in all regions as buying activity slowed in the run up to the festive season and in the wake of the new government measures introduced on 7 December. The number of launches also fell, down 52% m-o-m to 937 units in December. The initial impact of the Additional Buyers Stamp Duty (ABSD) is felt equally across all submarkets in the demand for new residential units (prime and mass) on a month on month comparison. As a whole, the new sales demand nationwide dropped by 63% in December to 632 units compared to 1,702 units in November. New sales in the submarkets i.e. Outside Central Region (OCR) and Rest of Central Region (RCR) declined at the national average of 63% while, contrary to market expectations, the Core Central Region (CCR) declined by less at 57% m-o-m. This slightly lower than national average decline can be attributed to the fact that activity in this submarket had already been muted before the latest policy was introduced. The impact on the high end market is therefore lesser felt.
 

Table 1: Total island-wide (landed & non-landed excluding ECs) units sold

 

Dec-11

Nov-11

Dec-10

m-o-m change

y-o-y change

CCR

35

82

449

-57%

-92%

OCR

489

1,329

600

-63%

-19%

RCR

108

291

283

-63%

-62%

Island-wide

632

1,702

1,332

-63%

-53%

Take-up Rate

67%

87%

113%

 

 

 

 
However, taking away the seasonal factor, the CCR recorded the largest decline of 92% y-o-y, almost double the national average of 53% y-o-y. In contrast, the OCR registered a better showing with a decline of only 19% y-o-y suggesting that the depth and strength of the underlying Singaporean demand is likely to continue working its way through this market.
 
On the other hand, looking at launches, developers are generally more optimistic than buyers, both in terms of monthly and yearly change. This can be expected given the relatively strong take-up rate exceeding 50% across all regions. 
 

Table 2: Total island-wide (landed & non-landed excluding ECs) units launched

 

Dec-11

Nov-11

Dec-10

m-o-m change

y-o-y change

CCR

50

138

248

-64%

-80%

OCR

754

1,506

724

-50%

4%

RCR

133

323

207

-59%

-36%

Island-wide

937

1,967

1,179

-52%

-21%

 

Dr Chua reckons “The initial effect of the new policy had a 20-60% discount on market demand for new homes. The initial market response to this policy is the most severe of all the policies we have seen since 2009, in particular the withdrawal of the interest absorption scheme on 15 September 2009 which saw market demand falling by about 25% over the 30 day period. With the policy in place, coupled with the anticipated economic slowdown for Singapore and the region in 2012, we can expect demand to continue to moderate with an expected full year sales volume of 7,500-10,000 at the current pace of demand.  We can expect buying volume to remain in check over the next 60 days and Singaporean buyers should emerge across all submarkets as bargain hunting begins post spring festival providing support to market activity. Overall property prices island-wide could see a potential softening of between 0-8% in 2012” he added.   
 
Sales in the CCR fell by 57% m-o-m to 35 units, as launches also fell, down by 64% m-o-m to 50 units. The limited launches meant that the take-up rate increased in December to 70% as residual supply is taken-up. New launches remain limited in the region, with all of these units becoming available at previously launched projects rather than any new developments coming onto the market. The majority of the launched units were at The Scotts Tower, where 33 more units were released for sale and at Goodwood Residence, where 16 units were released.
 
The OCR saw sales fall by 63% m-o-m to 489 units in December, the lowest monthly total in 2011. However, launches continued in this region, with 754 units launched causing the take-up rate to fall to 65%, the lowest take-up of all regions this month. During December, three new projects were launched in the OCR. At Archipelago in the Bedok area, 180 units were launched for sale with sales secured for 103 units. In addition, 435 units were launched at The Nautical, although take-up was weak with only 84 units sold, and all 28 units at Residences 88 were launched, with 89% securing sales. Elsewhere, sales activity was focused on projects that were previously launched, although sales rates at these developments were mixed. At The Palette, 450 units have been launched to date with 420 units sold (93% take-up) and at Bedok Residences, 81% of the 583 units have now secured