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News Release

Singapore

​Jones Lang LaSalle’s perspective: Private residential units sold by developers in October 2013

Market getting back to a Slower Rhythm


SINGAPORE, 15 November 2013 – In October 2013, developers launched 1,124 private residential units and sold 1,009. By now, the residential property market would have adjusted to the TDSR framework and we could be seeing it settle into its new pace of activity. The 1009 units sold by developers in October is 19% lower than September’s sales but taken together, could be indicative of the level of demand going forward. Outside Central Region (OCR) accounted for 71% of the sales while Rest of Central Region (RCR) and Core Central Region (CCR) had 21% and 8% market share respectively.
The 10 new project launches shows that developers are more confident in resuming project sales after some uncertainty following the imposition of TDSR. However, the wide ranging take-up rate for the new launches shows that demand is selective and price-sensitive. The Inflora sold 388 of the 396 units put out for sale or a 98% take-up rate. Other projects that fared well include The Venue Residences (78%), Grandview Suites (71%) and Liv on Wilkie (60%). On the other hand, some new launches encountered poor response from buyers. Under present market conditions, besides location and other attributes, a realistic price level is needed to ensure reasonable sales progress. As demand has moderated after TDSR, new projects are now facing a more competitive environment in their sale launches.
Reviewing the sales progress of new projects launched (after TDSR) in July, August and September, we noticed that even projects that achieved strong sales in the month of launch encountered sluggishness in the following months. Projects that encountered weak sales at launch generally encountered slow progress in the following months as well. One may conclude that demand is much softer now and pricing for many projects is affecting their sales.
In the first 10 months of 2013, developers have sold 13,389 units and our estimate for the full year is 15,000 to 16,000 units.