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Stable demand in primary private residential market
Singapore, 15 June 2015 – In May 2015, 638 private residential units (excluding ECs) were sold by developers. This is 45.3 per cent lower than the 1,167 units sold in the previous month and 57.1 per cent lower than the number of new sales a year ago in May 2014. The decrease in new sales volume however is mainly contributed by the lack of new launch of large projects. For example in the recent past month, April, there was North Park Residences which sold 486 units out of 600 units launched. Likewise in May 2014, there was Coco Palms and Commonwealth Towers which launched 600 and 400 units respectively. Removing these single large projects, the number of units sold in April 2015 and May 2014 dropped to 681 units and 623 units respectively, which are about the current level of residual demand of 638 units sold in May 2015.
There were 499 private homes launched for sale in May 2015, just about the same as the monthly average of 498 units (excluding North Park Residences) launched in the first four months of 2015. Westwood Residences, an EC along Westwood Avenue located in the Jurong West planning area, is the sole fresh launch in May. All 480 units of the development were placed in the market with 118 units sold at a median price of $803 psf. The second largest launch in the month came from Sky Habitat which put up additional 139 units for sales in its fifth launch; however, only 12 units were sold with a median price of $1,619 psf during the month. Besides, buyers continued to absorb units launched in the previous month such as Botanique at Bartley and North Park Residences with 94 units and 59 units sold in May 2015 respectively.
In terms of market segment, Outside Central Region (OCR) is still dominating market share, accounting for 73.5 per cent of May's developer sales of private homes. Rest of Central Region (RCR) accounted for 15.7 per cent while 10.8 per cent was attributable to Core Central Region (CCR).
Dr Chua Yang Liang, Head of Research & Consultancy at JLL commented, "Although recent preliminary data suggest that some segments of the housing market are seeing an increase in activity, this is to be expected. The price correction so far has incentivised some buyers back into the market, especially given Singapore's strategic position and role within ASEAN and Asia Pacific. However this doesn't signal a market recovery as there are still just as many buyers who remain cautious over the impact of the potential interest rate rise and lingering effect of the government's cooling measures on the housing market. The level of market demand is likely to remain at 500 to 700 units per month."
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Dr Chua Yang Liang
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