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News Release

Singapore

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

New home sales in May 96 per cent higher than in April but premature to conclude a revival from the slump


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SINGAPORE, 16 June 2014 - In May 2014, developers launched 1,790 private homes for sale and sold 1,470 units. The 1,470 units sold that month was a 96.2 per cent rebound from April's sales and the highest monthly sales of private homes by developers since June 2013, when the TDSR was imposed. Eight new private residential projects were launched in May while only two were launched each month from February to April. The increase in the number of new projects launched in May and the strong launch figures do show that developers are more confident in resuming launches as there still many buyers in the market but who are now more price-sensitive.

The brisk sales of private homes during the month are mainly due to projects being realistically priced as well as enjoying favourable locations. Coco Palms sold 590 units of the 600 launched as buyers were attracted to its pricing and its proximity to the Pasir Ris MRT station. Some projects in the area, while not near the MRT station, have been selling for around $1,000 psf. Buyers were also attracted to Commonwealth Towers because it is near to Commonwealth MRT station and also due to its affordable pricing. Amongst projects launched in previous months, The Panorama sold 100 units at a median price of $1,241 psf, lower than the $1,343 psf during the initial launch in January this year.

The Outside Central Region (OCR) sub-market was the most active, accounting for 64 per cent of new private home sales, while Rest of Central Region (RCR) and Core Central Region (CCR) accounted for 34 per cent and 2 per cent respectively.

Mr Ong Teck Hui, National Director of Research & Consultancy at JLL comments: "While the May sales data may be interpreted positively, it would be premature to conclude that the market has revived from its slump. Two huge projects (Coco Palms and Commonwealth Towers) accounted for 56 per cent and 59 per cent of the month's launches and sales respectively and we still see a mix of good and poor take-up rates in the launched projects. However, we could see healthy monthly sales in the future if more projects are priced realistically at levels that would draw in buyers."

​Table 1:Total island-wide (landed and non-landed excluding ECs) units sold by developers ​ ​ ​ ​ ​
 May-13Apr-14May-14m-o-m changey-o-y change
CCR125213252%-74%
RCR606237494108%-18%
OCR72849194492%30%
Island-wide1459749147096%0.8%
Take-up Rate96%125%82%  
Source: JLL, URA ​ ​ ​ ​ ​


Table 2: New Launches (excl. EC) ​ ​ ​ ​ ​ ​ ​
LocalityDevt. nameLowest pxMedian pxHighest pxLaunchedSold Takeup rate
OCRCOCO PALMS$682 $1,018 $1,251 600 590 98%
RCRCOMMONWEALTH TOWERS$1,373 $1,626 $1,956 400 275 69%
RCRKALLANG RIVERSIDE$1,921 $2,111 $2,546 212 96 45%
RCRLOFT 33$1,078 $1,291 $1,307 30 12 40%
OCRSINGA HILLS$1,101 $1,210 $1,319 58 2 3%
OCRSUNNYVALE RESIDENCES$1,487 $1,487 $1,487 10 1 10%
CCRTHE RISE @ OXLEY - RESIDENCES$2,312 $2,452 $2,507 120 8 7%
OCRWATERFRONT@FABER$853 $1,257 $1,351 147 81 55%
Source: JLL, URA ​ ​ ​ ​ ​ ​ ​


jll-16-jun-2014-ura-may-2014.jpg

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