Private residential units sold by developers in April 2018

SINGAPORE, 15 May 2018 – In April, developers sold 729 private residential units, just 1.2 per cent marginally higher than March and less than half of the 1,567 units sold in April last year. The tally for the first four months of the year is estimated at 2,310 units, about half of the 4,529 units which developers sold for the same period in 2017.

Only 654 new private homes were launched during the month, continuing the leisurely pace of 614 units placed on the market in March and a mere 40 per cent of the 1,616 units launched last April. From January to April this year, an estimated 1,575 were launched for sale, 56 per cent less than 3,565 launched during the same period last year.

Three new private residential projects were launched in April. Cayman Residences placed all its 19 units on the market without selling any. Harbour View Gardens' 57 units were available for sale and 52 units were taken up at a median price of $1,763 psf. The Verandah Residences launched all of its 170 units, selling 141 at a median price of $1,846 psf.

The top selling private residential projects in April were Park Place Residences at PLQ (166 units at median price of $2,060 psf), The Verandah Residences (141 units at median price of $1,846 psf), Harbour View Gardens (52 units at median price of $1,763 psf), The Tapestry (51 units at median price of $1,391 psf) and Parc Botannia (41 units at median price of $1,324 psf).

The launch of the 628 unit Rivercove Residences in April boosted new executive condominium (EC) sales to 596 units, more than eight times the 72 units sold in the previous month. Top selling EC projects in April were Rivercove Residences (512 units sold at a median price of $970 psf), Signature at Yishun (32 units sold at a median price of $781 psf) and Parc Life (31 units sold at a median price of $862 psf).

Mr. Ong Teck Hui, National Director of Research & Consultancy at JLL, commented: "Contrary to what was expected earlier, only a few new projects were launched for sale in April, contributing to the low sales figures. Typically, when the market is upbeat, there tends to be a pick-up in activity in April as we saw last year when 1,616 private homes were launched and 1,567 sold. The 654 units launched and 729 units sold in April 2018 are in stark contrast to a year ago, despite the current buoyant market.

With much publicity on the keen demand from buyers, strong take-up at launches and robust pricing, market interest is being drummed up to the benefit of projects awaiting launches. The 3.9 per cent rise in the URA property price index in 1Q18 suggests the possibility of a good upside in prices which would encourage an unhurried stance towards launches in order to capitalise on the price increase. An examination of projects that were previously launched with unsold units shows many did not launch or launched judiciously in April notwithstanding the upbeat market.

However, several private residential projects have already been launched for sale in May and we expect improved launched and sales figures for this month.

In the absence of other new EC launches and existing EC projects at the tail end of their marketing, Rivercove Residences was able to capitalise on the lack of supply and dearth of competition to launch its 628 units and sell 512 at a median price of $970 psf, which is a record price for new ECs. With only the Sumang Walk EC project in the future launch pipeline and only one EC site scheduled to be out for tender in June, the EC market will remain under-supplied so the upward pressure on prices will continue."

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About JLL

JLL (NYSE: JLL) is a leading professional services firm that specialises in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2017, JLL had revenue of $7.9 billion; managed 4.6 billion square feet, or 423 million square meters; and completed investment sales, acquisitions and finance transactions of approximately $170 billion. At the end of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of 82,000. As of December 31, 2017, LaSalle had $58.1 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com

JLL has over 50 years of experience in Asia Pacific, with over 37,000 employees operating in 96 offices in 16 countries across the region. The firm won 23 awards at the International Property Awards Asia Pacific in 2017 and was named number one real estate investment advisory firm in Asia Pacific for the seventh consecutive year by Real Capital Analytics. www.ap.jll.com