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News Release

Singapore

JLL’s perspective: Private residential units sold by developers in March 2014

Primary market remains muted in March 2014 as uncertainty continues


SINGAPORE, 15 April 2014 - In March 2014, developers launched 724 private residential units for sale, 5 per cent more than in February, but managed to sell only 480 units, 35 per cent less than the previous month. As in February, only two new projects were launched in March, indicating a lack of confidence on the part of developers in launching new projects under current market conditions, especially after TDSR was imposed. The majority of new projects launched after TDSR did not enjoy good initial take-up and also encountered slow sales progress in subsequent months. This is a situation that developers are trying to avoid and hence fewer new projects are being launched in recent months.

The two new projects launched in March 2014 are Ascent@456 along Balestier Road and The Santorini, along Tampines Street 86. None of the 28 units in Ascent@456 was sold in March while 76 units of The Santorini's 597 units were taken up at a median price of $1,108 psf, making it the best-selling project for the month. The next best-selling project in March was Eight Riversuites at Whampoa East, where 44 units were sold at a median price of $1,109 psf. It is noted that this is the lowest monthly median price for this project since it was launched in May 2012 at an initial median price of $1,340 psf.

Rounding up 1Q14, 1,964 private homes were launched for sale, while 1,791 units were sold. The 1,964 units launched for sale in the first quarter is the lowest since 4Q08 when 706 units were launched, while the 1,791 units marks the lowest number of units sold since 4Q09, when 1,860 units were taken up. Compared to the quarterly averages in 2012 when 5,370 units were launched and 5,549 units sold, the 1Q14 figures are about two-thirds lower, reflecting the current sluggish level of market activity. We expect similar market trends in the months ahead and while attractively priced projects may stir interest, overall volumes are likely to remain subdued.

Mr Ong Teck Hui, National Director of Research & Consultancy at JLL comments: "It can be daunting to launch a new project under today's difficult market conditions as the performance of new sales launches after TDSR was imposed has not been encouraging. Of all the new projects launched after TDSR was implemented, only about a quarter achieved a good take-up of 70 per cent and above but in subsequent months, most of these projects still struggle to sell their units. The unsold units in projects previously launched also act as a deterrent for new launches as it only intensifies the competition amongst projects for a limited pool of buyers."

 

Table 1: Total island-wide (landed and non-landed excluding ECs) units sold by developers ​ ​ ​ ​ ​
 Jan-14Feb-14Mar-14m-o-m changey-o-y change
CCR4353541.9%-66%
RCR3668812744%-85%
OCR163598299-50%-84%
Island-wide572739480-35%-83%
Take-up Rate104%107%66%  
Source: JLL, URA

 

Table 2: New Launches (excl. EC) ​ ​ ​ ​
LocalityDevt. nameLowest pxMedian pxHighest pxLaunchedSold Takeup rate
RCRASCENT@456---2800%
OCRTHE SANTORINI$1,022 $1,108 $1,274 5977613%

 

Figure 1: Launched, sold and take up rate of new launches

15apr press release.jpg 

Source: JLL, URA

 

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