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News Release

Singapore

Jones Lang LaSalle's perspective: Private residential units sold by developers in January 2014

Market remains subdued due to festive month and weak sentiments


​​​SINGAPORE, 17 February 2014 – Another slow month of developer sales was witnessed in January 2014, with 549 units launched and 565 units sold. Despite January's performance being 118% stronger than that of December 2013, the market has yet to recover to the level seen during the first half of 2013 i.e. before the implementation of the Total Debt Servicing Ratio (TDSR). Aside from the weak sentiments due to policy measures, last month coincided with the Lunar New Year festivities, resulting in the market remaining sluggish. In previous years, when the market was buoyant, developers have continued to launch new projects even during the Lunar New Year period. They have been more cautious this festive period following weak responses to numerous launches in the last few months.

A total of three residential projects were newly launched for sale in January with the large majority supported by the sale of The Hillford along Jalan Jurong Kechil Road. The project was marketed as a retirement resort, selling out all units as a result of its affordable pricing of $1,105 psf. With a shorter tenure of 60 years, the developer was able to price The Hillford competitively, resulting in a successful launch. Over at Ang Mo Kio Avenue 2, The Panorama achieved moderately good take-up of 48%, with 58 units sold out of 120 units launched. Located at the fringe of Ang Mo Kio, the project fronts a quiet landed housing estate and is near St Nicholas Girls' School. Also launched this month is Floraview at Ang Mo Kio Street 66, which sold 1 unit out of a total of 90.

Market activity is expected to pick up after January with more new projects being launched. However buyers are now more price-sensitive and sales take-up of new projects will depend on how they are priced.

 

Mr Ong Teck Hui, National Director, Research & Consultancy, Jones Lang LaSalle comments:

"Generally when the market is soft, developers would avoid launching new projects during the Chinese New Year season. However if one has a new product with competitive pricing, it would be a clever strategy to launch the project while the others are staying away. The Hillford seems to have done just that, being only one of three new projects launched in January, capturing the attention of the market and achieving a quick sell-out."