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News Release

Singapore

JLL’s perspective: Private residential units sold by developers in September 2016

Subdued sales due to absence of fresh launches


Singapore, 17 October 2016  The number of private residential units sold by developers increased 8.8% m-o-m to 509 units in September 2016. Compared to September 2015, this was a 49.3% increase. Although an improvement over the previous month, new sales performance in September was still low-key due to the absence of fresh launches. In the first nine months of this year, developers have sold 5,744 units, just 1.6% shy of the 5,837 units sold during the same period in 2015.

 
As no fresh projects were placed on the market in September, only 479 new private homes were launched for sale, 18.8% less than the units launched in August. Previously launched projects that released a significant number of units in September were Lake Grande (210 units), Vue 8 Residence (53 units), Sims Urban Oasis (50 units), Principal Garden (50 units) and Mon Jervois(47 units). The releases are probably an expectation of a pick-up in sales in the coming months.
 
The best-selling private residential projects in September were Lake Grande (29 units at median price of $1,312 psf), The Trilinq (28 units at median price of $1,405 psf), Kingsford Waterbay (23 units at median price of $1,202 psf), The Glades (21 units at median price of $1,456 psf) andSophia Hills (20 units at median price of $1,892 psf).
 
There was no fresh executive condominium (EC) launch in September and the 260 units sold was a 21.5% fall from August sales. The new EC market has performed better in the first three quarters of 2016 compared to the same period last year. Developers have sold 3,296 new ECs from January to September 2016 against 2,656 units launched during that period while for the first three quarters of 2015, only 1,977 new ECs were sold while 3,245 units were launched. The improved sales of ECs is mainly due to more realistic pricing in 2016 that attracted more buyers. The median price of new ECs has declined 6.4% from $826 psf in 1Q15 to $773 psf in 3Q16.

Treasure Crest topped new EC sales with 38 units taken up at a median price of $746 psf. The other EC projects that sold fairly well include Sol Acres (36 units at median price of $800 psf),The Terrace (28 units at median price of $787 psf), Wandervale (24 units at median price of $767 psf) and Parc Life (20 units at median price of $782 psf)
 
Mr Ong Teck Hui, National Director of Research & Consultancy at JLL commented: “September is an uneventful month for new sales in the private residential market but the next couple of months are expected to be more active and will provide a clearer indication of the direction of the market, with the launch of The Alps Residences (626 units), Forest Woods (519 units),Queens Peak (736 units) and Parc Riviera (752 units). It has already been reported that The Alps Residences and Forest Woods found keen interest amongst buyers and achieved good sales take-up. The current momentum of the market is likely to result in both launches and take-up in 4Q16 exceeding the 1,333 units launched and 1,603 units sold in 4Q15. It is estimated that 7,500 to 8,200 private residential units would be sold by developers in 2016, exceeding the 7,440 units sold last year.”
 
 
  Table 1:Total island-wide (landed and non-landed excluding ECs) units sold by developers
 
Sep-15
Aug-16
Sep-16
m-o-m change
y-o-y change
CCR
20
49
68
39%
240%
RCR
68
139
144
4%
112%
OCR
253
280
297
6%
17%
Island-wide
341
468
509
9%
49%
Take-up Rate
87%
79%
106%
 
 
Source: JLL, URA
 
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