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News Release

Singapore

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

New home sales in April 55 per cent higher than in March but still well below pre-TDSR levels; Realistic pricing crucial in moving sales


SINGAPORE, 15 May 2014 - In April 2014, developers remained cautious in launching units for sale, resulting in only 586 new units being placed on the market.  745 private homes were sold by developers in April, which was 55 per cent higher than in March, but still well below the 1H2013 monthly average of 1,658 units before TDSR was imposed.

Two new private residential projects, Lakeville and The Sorrento, were launched in April. These were priced realistically and achieved good sales take-up. Lakeville sold 210 of the 230 units launched at a median price of $1,318 psf. This compares favourably with the median price of $1,486 psf for J Gateway when it was launched in April 2012. The Sorrento sold 125 of the 131 units launched at a median price of $1,414 psf while at nearby Seahill, sale prices in 2013 averaged $1,680 psf. The Sorrento has been able to attract buyers with its reasonable pricing. Amongst projects launched earlier, Sky Habitat sold 130 units at a median price of $1,377 psf, well below the median price of $1,583 psf when the project was launched in April 2012.

Both Lakeville and The Sorrento are located in Outside Central Region (OCR). OCR accounted for 65 per cent of private home sales by developers in April while Core Central Region (CCR) and Rest of Central Region (RCR) accounted for 3 per cent and 32 per cent respectively.

Mr Ong Teck Hui, National Director of Research & Consultancy at JLL comments: "With reduced demand in the market and buyers looking out for bargains, pricing is crucial in moving sales. Currently, the sweet spot seems to be a 10 to 15 per cent price adjustment below previous levels in order to attract buyers."

 

Table 1:Total island-wide (landed and non-landed excluding ECs) units sold by developers ​ ​ ​ ​ ​
 Apr-13Mar-14Apr-14m-o-m changey-o-y change
CCR1795421-61%-88%
RCR47412723787%-50%
OCR73129948763%-33%
Island-wide138448074555%-46%
Take-up Rate119%66%127%  
Source: JLL, URA

 

Table 2: New Launches (excl. EC) ​ ​ ​ ​ ​ ​ ​
LocalityDevt. nameLowest pxMedian pxHighest pxLaunchedSold Takeup rate
OCRLAKEVILLE$1,143 $1,318 $1,505 23021091%
OCRTHE SORRENTO$1,115 $1,414 $1,513 13112595%
Source: JLL, URA

 

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