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News Release

Singapore

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

New private home sales in December lowest in 2014


SINGAPORE, 15 January 2015 – In December 2014, only 230 private homes were sold by developers, a 46 per cent decline from the previous month. No new private residential project was launched for sale in December. The only new launch was in the Executive Condominium (EC) market where The Terrace placed 747 units on the market.
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The low sales take-up for private homes was expected as developers had already written off December for new launches due to low interest from buyers during the year-end holiday period, which would have exacerbated the already weak demand resulting from the cooling measures. 2014 ended with 7,378 ​private residential units sold, about 50 per cent less than in 2013. The weakening in the market is seen more clearly by examining the changes in new private home sales on a half-yearly basis – 9,950 units in 1H13, 4,998 in 2H13, 4,409 in 1H14 and 2,969 in 2H14. The sales volume in 2H14 was only 30 per cent of that in 1H13 before the TDSR was imposed.

In December, The Terrace launched 747 EC units at a median price of $813 psf, and managed to sell 128 units. In November, Bellewaters, which launched 651 units at a median price of $813 psf, sold 170 units that month and 16 units in December. Bellewoods also launched 561 units in November, selling 79 units at a median price of $800 psf and disposing of 3 units in December. These trends could be indicative of sales response having slowed at current price levels for ECs in mediocre locations. In 2014, 2,505 EC units were launched for sale while 1,586 units were sold. 

Ong Teck Hui, National Director, Research & Consultancy at JLL commented: “While new private residential sales slumped in 2014, there is a chance that it might improve in 2015. Many buyers are timing the market with reference to the easing of measures by the Government. Many see 2016 as a possibility, perhaps even late 2015, by which time prices are likely to have corrected by more than 10 per cent. This could result in more buyers re-entering the market in the later part of the year enticed by lower prices and before measures are eased.”

  Table 1:Total island-wide (landed and non-landed excluding ECs) units sold by developers ​ ​ ​ ​ ​
 Dec-13Nov-14Dec-14m-o-m changey-o-y change
CCR448035-56%-20%
RCR901536160%-32%
OCR125190134-29%7%
Island-wide259423230-46%-11%
Take-up Rate219%49%460% 

 

 

Source: JLL, URA ​ ​ ​ ​ ​

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Table 2: New Launches (incl. EC) ​ ​
LocalityDevt name 
OCRTHE TERRACE (EC) 
​Source: JLL, URA ​ ​


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