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News Release

Singapore

JLL’s perspective: Private residential units sold by developers in June 2015

Launches and Sales decline due to June holidays


Singapore, 15 July 2015 In June, developers launched only 219 units (excluding ECs), 56 per cent less than in the previous month and 48 per cent less than in June 2014. The number of private homes sold by developers in June also fell sharply, by 42 per cent from that in May and 22 per cent lower than June 2014's sales. With many going away during the mid-year break as well as the already sluggish market, it was pointless for developers to launch new projects, explaining the absence of fresh project launches during the month. Consequently, sales take-up was also lacklustre, with many buyers giving the show flats a miss during this market lull.

 

The best-selling private residential projects during the month were Botanique @ Bartley (59 units at median price of $1,301 psf), Lakeville (25 units at median price of $1,320 psf), The Panorama (25 units at median price of $1,231 psf) and North Park Residences (24 units at median price of $1,355 psf). The fact that these developments are near existing or future MRT stations and amenities and are also priced affordably, being suburban projects, has helped them to attract buyers and move sales.

 

With the passing of the month of June, developers have sold 2,185 private homes in 2Q15, 67 per cent more than in 1Q15, and the highest quarterly developer sales since 2Q14 when 2,665 units were taken up. On a half yearly basis, 1H15 saw 3,496 private residential units sold, 20 per cent higher than 2H14 but 21 per cent lower than 1H14. The 2Q15 rebound from the first quarter and the 1H15 rebound from 2H14 is a positive sign, suggesting some measure of market stability. However the number of units sold in 2Q15 and 1H15 are lower than their corresponding periods a year ago, reflecting an overall softening in demand.

 

Ong Teck Hui, National Director, Research & Consultancy at JLL commented: "Pricing is still key to moving sales, so whether 2H15 sales volume can improve depends on how attractive pricing is to buyers. Barring adverse external factors, developer sales volume for private homes could be headed to around 6,500 to 7,500 units in 2015. However with talk of an early election, the question is whether developers would stiffen prices if they anticipate cooling measures being moderated. That could slow sales leading to a lower transaction volume in the interim."

Table 1:Total island-wide (landed and non-landed excluding ECs) units sold by developers ​ ​ ​ ​ ​
 Jun-14May-15Jun-15m-o-m changey-o-y change
CCR467049-30 per cent7 per cent
RCR16710279-23 per cent-53 per cent
OCR269471247-48 per cent-8 per cent
Island-wide482643375-42 per cent-22 per cent
Take-up Rate115 per cent129 per cent171 per cent  
Source: JLL, URA ​ ​ ​ ​ ​

 

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