JLL's perspective: Private residential units sold by developers in December 2017
Low sales due to year-end lull
SINGAPORE, 15 January 2018 – Developers sold 431 private residential units in December, 45.3% less than the previous month, but an increase of 17.4 per cent y-o-y. The low sales were due to the year-end holiday period when market activity typically slows. The 231 private homes launched during the month wer about half of the 450 launched in November, but a 156.7 per cent increase y-o-y. For the full year, an estimated 10,682 new private homes were sold, 34 per cent more than in 2016. On the other hand, launches fell 23 per cent from 7,877 units in 2016 to an estimated 6,066 units last year.
LIIV Residences was the only new private residential project launched in December. The 23-unit development sold 3 units at a median price of $1,761 psf. The top selling projects during the month were Symphony Suites (50 units at a median price of $1,027 psf), Parc Riviera (44 units at a median price of $1,223 psf), Parc Botannia (32 units at median price of $1,283 psf), Queens Peak (24 units at median price of $1,679 psf) and Gem Residences (21 units at median price of $1,501 psf).
New executive condominium (EC) sales slowed to 100 units in December, falling 32.9 per cent from the previous month. For the whole of 2017, an estimated 4,025 new EC units were sold, roughly on par with the 3,999 units taken up in 2016, notwithstanding only 1,555 units launched, constrained by low inventory levels.
Top selling EC projects in December were Signature at Yishun (25 units at a median price of $761 psf), INZ Residence (22 units at a median price of $808 psf), Parc Life (17 units at a median price of $815 psf), The Criterion (10 units at a median price of $789 psf) and Northwave (9 units at a median price of $790 psf).
Mr Ong Teck Hui, National Director of Research & Consultancy at JLL commented: “New private home sales in 2017 are the strongest in four years and about 34 per cent higher than last year. This reflects the upbeat demand that is supporting recovery in the residential market that has also led to prices turning around since mid-2017. 2018’s market performance will hinge on the launch supply as well as pricing which will determine sales take-up in new projects launched. Some 9,000 to 10,000 private residential units could potentially be launched in 2018 and together with about 2,000 units unsold in launched projects, should provide a healthy level of supply taking into account the take-up of about 10,700 units in 2017. However, if launches are slowed deliberately and pricing becomes over-optimistic, sales could be less brisk than anticipated.”
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|Source: JLL, URA |
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|Source: JLL, URA|