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News Release


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

Subdued sales due to year-end holidays


Singapore, 16 January 2017 – The number of private residential units sold by developers decreased 57.3 per cent m-o-m from 860 units in the previous month to 367 units in December 2016, , due to the year-end holidays. This is a 4.4 per cent decrease compared to December 2015. For the whole of 2016, developers sold 8,136 units, 9.4 per cent more than the 7,440 units sold during the same period in 2015, on the back of improved sentiments and increased demand.


There were no fresh sales launches in December and only 90 private residential units were released from previously launched projects, a mere 6.6 per cent of the 1,363 units that came on the market in November and a 48.0 per cent decline y-o-y. The launch tally for 2016 was 7,853 private homes, 11.3 per cent higher than in 2015 due to developers being more optimistic as sentiments improved.


The top-selling private residential projects in December were The Santorini (26 units at a median price of $1,047 psf), Queens Peak (25 units at a median price of $1,652 psf), Parc Riviera (22 units at a median price of $1,240 psf), Riverbank @ Fernvale (17 units at a median price of $964 psf) and The Alps Residences (16 units at a median price of $1,020 psf).


There were no fresh executive condominium (EC) launches in December, with the exception of Sol Acres, which had been previously launched, which released 93 units onto the market. The total number of new ECs launched in 2016 was 2,749, a 26.7 per cent drop from the 3,750 units that were placed on the market the year before. Despite reduced new EC launches, developers sold 4,018 EC units in 2016, a 57.6 per cent increase from the 2,550 units sold in 2015. More realistic pricing led to median prices of new ECs falling about 5.0 per cent from 1Q15 to 4Q16, contributing to a pick-up in sales.


Sol Acres topped new EC sales with 66 units taken up at a median price of $789 psf. Other EC projects that sold fairly well include The Terrace (33 units at a median price of $790 psf), The Vales (17 units at a median price of $805 psf), Westwood Residences (17 units at $786 psf) and The Visionaire (14 units at a median price of $814 psf).


Mr Ong Teck Hui, National Director of Research & Consultancy at JLL commented: "While December sales of private homes was subdued, an analysis by the quarter shows that the 2,480 units sold in 4Q16 is the strongest quarterly volume in 2016, as well as since 2Q14. Coupled with 2016's 9.4 per cent increase in private home sales over the previous year, this reflects a moderate strengthening in demand from buyers driven by a perception of the market bottoming out, pent-up demand, buying opportunities at more realistic prices and acceptance of the cooling measures as a market norm. These trends are likely to persist in 2017 and could result in primary market sales of private homes registering between 8,000 and 8,800 units.


After reaching a low of 7,316 units in 2014, sales of new private homes have crept up gradually, to 7,440 units in 2015 and 8,136 units in 2016, in tandem with the moderation in decline in the (URA) price index from -4 per cent in 2014, to -3.7 per cent in 2015 and -3 per cent in 2016. The desired soft landing following the cooling measures seems to be occurring rather neatly and will be near perfect if sales improve further this year on the back of continued moderation in price decline. The absence of price and sales volume volatility augurs well for the market, as buyers would feel more confident knowing that the value of their investments is unlikely to face a sharp correction, while awaiting long term appreciation."

  ​​​​Table 1:Total island-wide (landed and non-landed excluding ECs) units sold by developers ​ ​ ​ ​ ​
 Dec-15Nov-16Dec-16m-o-m changey-o-y change
Take-up Rate 222%63% 408%  
Source: JLL, URA