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News Release

Singapore

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

Continuity in new project launches keeps market active


SINGAPORE, 15 DECEMBER 2016 The number of private residential units sold by developers decreased 31.4 per cent m-o-m to 860 units in November 2016, from 1,253 units in the previous month. Compared to November 2015, it was a 13.3 per cent increase. In the first eleven months of this year, developers have sold 7,769 units, 8.7 per cent more than the 7,145 units sold during the same period in 2015, and also exceeding its full year sales of 7,440 units.

November's launch momentum was maintained by Parc Riviera and Queens Peak being placed on the market and contributing to the 1,363 units launched, a 7.1 per cent m-o-m decline but an 85.9 per cent y-o-y increase. January to November 2016 saw 7,763 units launched, 12.7 per cent more than that for the same period last year, attesting to the stronger confidence amongst developers in increasing launches this year. Nineteen new private residential projects have been launched so far in 2016, more than the 15 last year.

The top-selling private residential projects in November were Queens Peak (271 units at a median price of $1,628 psf), Parc Riviera (128 units at a median price of $1,189 psf), The Alps Residences (32 units at a median price of $1,038 psf), The Trilinq (25 units at a median price of $1,430 psf) and Symphony Suites (23 units at a median price of $1,079 psf).

There was no fresh executive condominium (EC) launch in November and the 250 units sold was a 13.5 per cent decrease from October sales. The new EC market has maintained a healthy momentum in 2016, achieving 3,804 units sold from January to November, a 56.0 per cent surge from the 2,438 units taken up during the same period last year. Sol Acres topped new EC sales with 56 units taken up at a median price of $784 psf. Other EC projects that sold fairly well include The Terrace (36 units at median price of $784 psf), Westwood Residences (29 units at median price of $798 psf), Bellewoods (27 units at $766 psf) and The Vales (19 units at median price of $823 psf).

Mr Ong Teck Hui, National Director of Research & Consultancy at JLL commented: "While The Alps Residences and Forest Woods together sold 698 units in October, Parc Riviera and Queens Peak only sold 399 units combined in November as the latter two projects are more challenging to market. The Alps Residences, being an entry level suburban condominium had the advantage of price affordability (median launch price of $1,078 psf) while Parc Riviera, at a median launch price of $1,189 psf had no particular attributes such as proximity to MRT or amenities to boost sales. Forest Woods which is near Serangoon MRT and Nex shopping mall and launched at a median price of $1,412 psf also had a price advantage over Queens Peak (median price of $1,628 psf), despite its proximity to Queenstown MRT. This proves that affordability is still a vital attribute in a market that remains price-sensitive.​

In terms of new private home sales, 4Q16 marks the difference between 2015 and this year. Up to September 2016 with 5,656 units sold, was still lagging the 5,837 units sold in the first nine months of last year. The surge in transactions in October and November, amounting to 2,113 units, exceeds the 1,308 units sold in the same period in 2015 by 61.5 per cent. Assuming new private home sales of 300 to 500 units in December, 4Q16 could end with 2,400 to 2,600 units sold, the strongest quarter for the year, a contrast to what is usually a slower quarter. What this means is that demand for new private homes could have turned the corner in the market slowdown of the last three years and poised to improve in 2017."

 

  ​​​​Table 1:Total island-wide (landed and non-landed excluding ECs) units sold by developers ​ ​ ​ ​ ​
 Nov-15Oct-16Nov-16m-o-m changey-o-y change
CCR225838-34 per cent73 per cent
RCR504151418177 per cent-17 per cent
OCR2331,044404-61 per cent73 per cent
Island-wide7591,253860-31 per cent13 per cent
Take-up Rate104 per cent85 per cent63 per cent  
Source: JLL, URA

 

​​Table 2: New Launches (ex. ECs) ​ ​ ​
LocalityDevelopment nameLowest PriceMedian PriceHighest PriceLaunchedSold Take-up rate
OCRPARC RIVIERA$996 psf$1,189 psf$1,329 psf20012864 per cent
RCRQUEENS PEAK$1,419 psf$1,628 psf$1,790 psf736 27137 per cent
Source: JLL, URA

 

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