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News Release

Jones Lang LaSalle’s Perspective: Urban Redevelopment Authority Private Residential Property Transactions for June 2012

Demand weakens further as sales volume falls for the second consecutive month


SINGAPORE, 16 July 2012 – The URA monthly sales volume for private residential units (excluding executive condominiums (ECs)) fell by 20% m-o-m in June 2012 to 1,371 units. The Rest of Central Region (RCR) saw the steepest falls as buying activity slowed in this region, while sales activity also fell in the Outside Central Region (OCR) but picked up in the Core Central Region (CCR) on the back of a popular new launch. The number of launches also fell island-wide, down by 47% m-o-m to 1,303 units, which translates to a take-up rate of 105% island-wide in June 2012 as demand outweighed supply. This is the lowest total of both sales and launches since December 2011.
 
Table 1: Total island-wide (landed & non-landed excluding ECs) units sold
 Jun-11 May-12 Jun-12 m-o-m change y-o-y change
CCR 122 135 141 4% 16%
OCR 833 1,207 1,111 -8% 33%
RCR 227 362 119 -67% -48%
Island-wide 1,182 1,704 1,371 -20% 16%
Take-up Rate 73% 70% 105%  

Despite falling sales volume, the OCR continues to perform well with total sales in June remaining above 1,000 units at 1,111, a decrease of 8% m-o-m. The number of units launched remained flat, with just three more units launched in June than in May, a total of 1,138. As a result, the take-up rate was close to 100% in the OCR in June with 98% of all units launched being sold. There were three new non-landed projects launched in the OCR in June, namely Tropika East, where all 105 units were launched, Sea Esta, where all 376 units were launched, and River Isles where an initial 442 units were launched. These projects all achieved sales of more than 50% in the month, with Sea Esta showing the strongest performance with 68% of units sold. Elsewhere, buyers continue to soak up supply from previous launches, with several projects continuing to sell units without any launches this month. Such projects include Bartley Residences (31 units sold), Flamingo Valley (24 units sold) and Seahill (24 units sold).
 

The CCR was the only region to enjoy an increase in sales volume in June, as the launch of 1919 at Mount Sophia proved popular with buyers and 74 of the 75 units at the development were sold in June at a median price of SGD 2,042 per sq ft. Overall, 141 units were sold in the CCR in June 2012, and increase of 4% m-o-m, with the sales at 1919 making up 52% of this. Sales also remained steady at previously launches projects including 8 Bassein, which sold a further 12 units in June bringing the take-up rate at the project to 57%, eight more units at Stellar RV, nine at D’Leedon and five more units at both The Trizon and EON Shenton which are now 88% and 85% sold, respectively. Launches however fell steeply in the CCR in June, down by 70% m-o-m to 94 units with 1919 the only new launch in the month. This fall in launches however has translated into a healthy take-up rate of 150% in the CCR, helping to soak up some of the excess supply in this region.

The RCR saw steep falls in both the number of units launched and sold in June 2012, falling by 93% m-o-m to 71 units and 67% to 119 units respectively. This however reflects the highest take-up rate of all three regions in June at 168%. There was only one new launch in the RCR in June, namely M66, where 70 units were launched, with the remaining addition a single unit at Ascentia Sky. Only 10 units were sold at M66, with previously launched projects such as Eight Riversuites (31 units) and Ness (12 units) proving more popular with buyers.
 
“Previous policy intervention is now starting to work its way through the market and buyers are returning, especially to the CCR, as landlords become more flexible on pricing and the price gap between the CCR and OCR narrows generating more buying interest and Singaporeans are increasingly supporting sales volume in this region, helping to soak up the unsold inventory.” says Dr Chua Yang Liang, Head of Research, South East Asia.
 

 

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Notes to editors
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47.2 billion of assets under management.

Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 22,200 employees operating in 79 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in nine Asia Pacific