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News Release

Singapore

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

A modest improvement after Hungry Ghost festival


​Singapore, 15 October 2014In September 2014, developers sold 648 private residential units, a 48 per cent increase over the previous month's sales. The improvement is attributed to the resumption of market activity after the Hungry Ghost festival. However, compared with pre-TDSR monthly sales volumes, September's sales is subdued, reflective of the much weaker state of the current market. Of the 648 units transacted, 272 (42 per cent) were from new launches while 376 (58 per cent) were attributable to earlier launches.

New launches of private homes in September rose to 514 units, a 29 per cent increase from the number of units launched in August. Eighty-eight per cent or 452 units were from five newly launched projects – Highline Residences, Seventy Saint Patrick's, Forte Suites, One Duchess and M5. Highline Residences and Seventy Saint Patrick's were the two top sellers during the month, disposing of 142 and 110 units respectively. Highline Residences' attraction is its city fringe location and proximity to Tiong Bahru MRT station, Tiong Bahru Plaza and many other amenities in the area. Buyers of Seventy Saint Patrick's are attracted by its location in a mature, low-rise private housing estate and its proximity to abundant amenities in the East Coast area.

In 3Q14, developers sold 1,596 private residential units, the lowest quarterly sales of new private homes since 4Q08. In the year before TDSR was imposed, quarterly sales volume was about 5,000 units on average, or roughly three times more the volume in 3Q14. This shows the extent to which demand has weakened in the primary market.

Mr Ong Teck Hui, National Director for Research and Consultancy at JLL, commented: "While new launches have picked up in September, the absolute numbers are still relatively small. This shows that developers are cautious about launching too many units together as they are uncertain about the market's ability to absorb. While the period before the year-end holidays presents a window of opportunity to secure more sales or launch new projects, developers are also concerned that too many projects being launched within a short time frame could dilute marketing efforts and sales take-up. If a project launch is deferred until 2015, the main concern would be how sentiments might be affected by possible slower economic conditions. These are some of the main considerations in deciding on project launches."

Table 1:Total island-wide (landed and non-landed excluding ECs) units sold by developers ​ ​ ​ ​ ​
 Sept-13Aug-14Sept-14m-o-m changey-o-y change
CCR4944440.0%-10.2%
RCR81516627364.5%-66.5%
OCR38222733145.8%-13.4%
Island-wide124643764848.3%-48.0%
Take-up Rate69%110%126%  
Source: JLL, URA ​ ​ ​ ​ ​

 

Table 2: New Launches (excl. EC) ​ ​ ​ ​ ​ ​ ​
LocalityDevt nameLowest pxMedian pxPrice rangeLaunchedSold Takeup rate
CCRM5$1,910 $1,910 $1,910 3313%

 

RCR

ONE DUCHESS$2,131 $2,272 $2,413 13215%
FORTE SUITES$1,622 $1,742 $1,885 1061716%
HIGHLINE RESIDENCES$1,599 $1,848 $2,245 16014289%
OCRSEVENTY SAINT PATRICK'S$1,400 $1,652 $1,795 14011079%
Source: JLL, URA ​ ​ ​ ​ ​ ​ ​

 

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