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Jones Lang LaSalle’s Perspective: Urban Redevelopment Authority Private Residential Property Transactions for June 2010

The sales volume of 847 units in June falls within expectations

SINGAPORE, 15 July 2010 - The latest URA data showed that monthly sales volume slid by 22% m-o-m to 847 units in June 2010. This fell within our earlier expectations for sales volume in June to close around 650 to 850 units as both developers and buyers held back their launches and purchases amidst heightened uncertainty from the eurozone debt crisis.

Of the 1,010 units that were launched, 847 units were sold; this translates into a take-up rate of 84% which marked another slide from the previous month, indicating a cooling demand in the primary market.

Table1: Total island-wide units (landed + non-landed) sold

Total Take-up Rate













m-o-m change
(Jun 10 vs. May 10)


y-o-y change
(June 10 vs. Jun 09)



Source: URA/ Jones Lang LaSalle Research

The Outside Central Region (OCR) led the way in sales volume with 429 units sold in June on the back of some major launches which included The Minton and Waterfront Gold. The former saw 173 units sold out of 200 released units (take-up rate: 87%) while the latter sold 77 out of 157 released units (take-up rate: 49%). The Minton, which was sold at a median price of around $871 per sq ft, remains affordable under current market conditions; on the other hand, Waterfront Gold had a weaker showing of only 49% taken up. The total quantum payable is possibly larger than what the market is willing to absorb at this moment at over $1 million for a 3-bedroom unit at 1,195-1,227 sq ft.

In contrast, take up in the Rest of Central (RCR) was less encouraging as the comparatively higher pricing of major launches made it more difficult for such units to be absorbed by the market under current market conditions; 275 units were sold out of 445 released units in the RCR.  Similarly, projects that command a lower price quantum continued to be well-received and these include La Brisa which outperformed expectations with 98% of the project taken up. The total quantum payable for a typical 2-bedroom unit at 517-689 sq ft works out to about $435,000-$710,000.

The recent new launches in early July has shown that projects that offer good branding and choice locations continued to be favoured by buyers. Developers that are holding onto prime sites may continue to launch their projects but in phases to control the new supply and benefit from price increases if past launches are well-received. We can expect sales volume to remain strong in July before consolidating as we enter the lunar month of Hungry Ghost Festival in August. Bargain hunting is likely to be the main focus of buyers and we can expect a pick up in sales activity although it is likely to remain moderate.

On the back of this, we reckon our projection for sales volume to range between 13,000 and 14,000 units in 2010. Dr Chua Yang Liang, Head of Research South East Asia commented, “While transaction volume has declined, prices are likely to hold up. As the previous period of capital appreciation has already over capitalised the market’s worth, we can expect a more moderate buying mood backed by conservative global economic conditions and hence a continual slow down in capital values growth.”

Explanatory Notes:

  • Core Central Region (CCR): which comprises Postal Districts 9, 10 and 11, the Downtown Core and Sentosa
  • Rest of Central Region (RCR): Rest of Central Region (RCR) which comprises the Central Region outside the CCR
  • Outside Central Region (OCR): Area outside Central Region
  • Landed Housing: Include bungalows, semi-detached and terrace houses
  • Non-Landed Housing: Include apartment/condominium
  • Median price: For landed residential properties (i.e. detached, semi-detached and terrace houses), the median price per sq m is computed based on their land area. For strata sub-divided properties, such as apartments, condominiums, cluster housing, townhouses, the median price per sq m is computed based on their strata floor area.
  • Take up rate: Number of units sold over number of units launched. Number of units sold in that month can surpassed the units launched as some buyers are buying unsold units released in the previous months.