Private residential units sold by developers in October 2018

Sharp decline in launches and sales

November 15, 2018

Mr Ong Teck Hui, Senior Director, Research & Consultancy

王德辉, 研究与咨询部董事(新加坡)

Sales and launch volumes fall sharply

In October, developers sold 487 private residential units, a fall of 47.7% from the 932 units sold in September and also 36% lower y-o-y. The lower sales during the month were partly constrained by the sharp decline in launches of only 202 units, which is nearly six times less than those in September.

In the first ten months, an estimated 7,446 new private homes were sold, about 21% less than the same period last year. On the other hand, the estimated number of 7,314 units launched from January to October is about 36% higher than the same period last year.

Only one new project was launched

Only one new project was launched in October – 10 Evelyn, which is in prime district 11. The 56-unit project sold two units at a median price of $2,478 psf.

Brisk sales at top selling private residential projects

 

Project

Sold (units)

Median price (psf)

Affinity at Serangoon

81

$1,499

Stirling Residences

75

$1,738

Riverfront Residences

55

$1,327

Park Colonial

52

$1,754

The Tapestry

26

$1,375

Source: URA

New executive condominiums (EC) fetch optimistic prices

23 new ECs were sold by developers in October, exhausting unsold supply and fetching optimistic prices

Project

Sold (units)

Median price (psf)

Rivercove Residences

15

$1,009

Northwave

5

$869

Parc Life

2

$991

Sol Acres

1

$963

Source: URA

Mr Ong Teck Hui, Senior Director of Research & Consultancy at JLL, commented:

“The subdued new private home market in October is in stark contrast to its upbeat performance in September. New sales almost halved while launches were only about a sixth, compared to the previous month. There was an expectation for the encouraging performance in September to carry through into October to capitalise on positive market sentiments.

The sharp slowdown in October coincided with the announcement of the new URA guidelines which would moderate the reduction in home sizes and possibly reduce the number of shoebox units due to a revision in the basis for calculating the maximum permissible number of dwelling units for a non-landed residential development outside the Central Area. Previously, the maximum number of dwelling units was derived by dividing the proposed Gross Floor Area (GFA) by 70 sqm, but from 17 January 2019, it will be derived by dividing the GFA by 85 sqm.

As the revised guidelines left a sense of uncertainty in the market, it could have impacted on launches as sellers re-assessed the situation. However, the lull in October could be short-lived as launches have resumed in November including projects such as Whistler Grand, Arena Residences, Belgravia Green, The Woodleigh Residences and Parc Esta.

EC sales in October saw prices of remaining unsold units being pushed up further by developers to capitalise on the shortage of supply. The median price of $991 psf at Parc Life is 26.4% higher than the median price of $784 psf at launch in April 2016. Sol Acres sold one unit at $963 psf, which was 22.4% above the median price of $787 psf during its launch in August 2015. Rivercove Residences’ median price of $1,009 psf was 4% higher than the $970 psf at launch six months ago.

It is a sellers’ market for new ECs and the shortage of supply means new projects would be launched at robust prices, taking reference from the October median price of above $1,000 psf seen at Rivercove Residences, subject to adjustments for location.”