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News Release

Singapore

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

New launches and sales improve slightly but market remains subdued


​​Singapore, 17 November 2014In October 2014, 765 private residential units were sold by developers, an increase of 18.1 per cent over September's sales. The slight improvement over the previous month shows that sales is generally trending sideways, having remained range-bound between 400 to 800 units since June. For the year-to-October, 6,705 units have been sold or an average of 670 units per month, reflecting considerable weakness in the market when compared to the average of 1,685 units per month for the year before TDSR was imposed. The weakness in the market is getting close to that during the global financial crisis when primary market sales averaged 355 units per month in 2008.

New launches in October rose to 649 units, 26 per cent higher than in September, mainly due to the 400 units launched in Marina One Residences at Marina Bay. Other projects that launched a fair number of units for sale include Coco Palms (70), The Panorama (50), RV Residences (35) and The Glades (30).

The top selling projects in October were Marina One Residences (334 units), Coco Palms (34), Lakeville (32) and The Skywoods (21). The keen sales at Marina One Residences was due to its attractive pricing, its proximity to MRT stations and the fact that many buyers see it as a prime inner city development. The median price of $2,228 psf at Marina One Residences falls within the average price range of $2,000 to $2,700 psf at Marina Bay Residences and Marina Bay Suites.

Mr Ong Teck Hui, National Director for Research and Consultancy at JLL, commented: "The lack of new launches in October despite this period being considered as a window of opportunity to secure some sales, shows that developers are not confident that there is sufficient demand to achieve a decent take-up. Of all the new projects launched for sale after TDSR was introduced in June last year, nearly two-thirds still have more than 50 per cent of their units unsold. Due to the challenging market conditions, developers seem to prefer to let the year slip by and tackle the challenges afresh in 2015. It is unlikely that the market will see any significant resurgence in launches and sales for the rest of 2014 and it looks set to close as the most dismal year since 2008 when the market was hit by the global financial crisis."


Table 1: Total island-wide (landed and non-landed excluding ECs) units sold by developers ​ ​ ​ ​ ​
 Oct-13Sep-14Oct-14m-o-m changey-o-y change
CCR9444381766%305%
RCR290273123-55%-58%
OCR721331261-21%-64%
Island-wide110564876518.1%-30.8%
Take-up Rate98%126%118%  
Source: JLL, URA ​​​ ​ ​ ​ ​​


Table 2: New Launches (excl. EC) ​ ​ ​ ​ ​ ​ ​
LocalityDevt nameLowest pxMedian pxPrice rangeLaunchedSold Takeup rate
CCRMARINA ONE RESIDENCES$1,964 $2,228 $2,759 40033484%
Source: JLL, URA ​ ​ ​ ​ ​ ​ ​

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