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Singapore

Jones Lang LaSalle’s Perspective: Urban Redevelopment Authority Private Residential Property Transactions for June 2013

Strong sales figures as a result of a number of attractive suburban projects


​Singapore, 15 July 2013: June 2013 recorded a total sale of 1,806 units (excluding Executive Condominiums (EC)), a strong increase of 24 percent from the 1,459 units sold in May 2013. A total of eight new projects were launched in the month including Forestville, an EC in Woodlands. The better performing new projects sold well due to their attractive locations and included J Gateway, Jewel @ Buangkok, and Three 11.
Other than the noticeable increase in sales from last month, the 1806 units sold in June 2013 also outstripped the 1768 units that were launched during the month. The 24 percent sales surge in June, along with 3 percent increase in Outside Central Region (OCR) prices in the second quarter appears to have contributed to MAS imposing the new loan framework in late June. The loan framework includes the Total Debt Servicing Ratio (TDSR) and tightening of other loan measures. While intended to counter over-leveraging, these measures are also seen as an attempt to temper sales volume and prices. 
The strong sales performance in June was predominantly driven by a few OCR projects in attractive locations. J Gateway and Jewel @ Buangkok collectively sold 1,019 private homes out of 1,806 units available for the month, accounting for 56 percent of total sales. These two projects are within walking distance of the MRT, making them more attractive than other projects. While J Gateway and Jewel @ Buangkok have achieved 100 percent and 81 percent take-up respectively, most other projects encountered slower sales. The month of June also saw the launch of Forestville, an EC project in Woodlands which achieved a moderate take-up rate of 226 units or 35 percent of the total 653 units launched.
Mr Ong Teck Hui, National Director, Research & Consultancy, Jones Lang LaSalle comments: “Well located projects such as those near MRT stations and other amenities tend to command strong interest from buyers and we can see this phenomenon with J Gateway and Jewel @ Buangkok, which together accounted for 94 percent of the private home sales in June’s new launches. Without them, June would have been rather lacklustre as the other launches were small and commanded less interest.”
“It is extremely difficult to forecast the number of private homes that will be launched and sold in the next few months as the market is still adjusting to the new measures imposed by MAS. Developers with launch-ready projects are closely observing the performances of recently launched developments in order to decide on the timing and magnitude of their own launches. In the face of this uncertainty, we could see launches delayed or scaled back in terms of the number of units on offer which could, in turn, lead to lower monthly sales figures.”







Source: Jones Lang LaSalle, URA


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About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet. Its investment management business, LaSalle Investment Management, has $47.0 billion of real estate assets under management.

Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 25,100 employees operating in 76 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in nine Asia Pacific countries at the International Property Awards Asia Pacific 2012, in association with HSBC, and was named the number one real estate advisory firm in Asia Pacific in the Euromoney Real Estate Awards 2012. www.joneslanglasalle.com/asiapacific 

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