With a solid showing of private home sales last month, developers should close the year on a strong note, even as the government cautioned it could step in to temper overexuberance in the market.
According to the latest data from the Urban Redevelopment Authority (URA) yesterday (Nov 16), developers sold approx 969 new private residential homes and executive condominiums (ECs), an increase of 7% as compared to September.
They have also launched more units – 242 homes – during the present month, up from 73 homes in September.
Excluding ECs, the 758 private residential units sold last month also represented a 15.4% increase from Sep.
The top-selling projects last month were very sooner launches, including Sophia Hills, jointly developed by Hoi Hup Realty and Sunway Developments, Martin Modern by GuocoLand and Qingjian Realty’s EC project iNz Residence.
The two low-key project launches last month included The Navian by Roxy-Pacific Holdings in Jalan Eunos, which launched 24 out of 48 units and sold 12 at a median price of $1,543 per square foot (psf). Carpmael Thirty-Eight, developed by private company Lim Wen Heng Construction, launched 16 units.
Also reflecting the improved sentiment towards high-end homes, the two top-selling private residential projects last month were both in the superior region or Core Central Region (CCR).
At Sophia Hills, 62 units were sold at a median price of $2,029 psf while at Martin Modern, also in district 9, 47 units went for a median $2,343 psf.
Some 44% of private homes sold by developers last month were in the suburban region or the Outside Central Region. But it was the CCR which saw the biggest percentage pick-up in transactions – a 143 percent surge from a month ago and a year ago – to 141 units in October.
Today’s CCR property prices, maintain between $2,000 psf and $2,300 psf, are deemed very attractive because new launches in 2018 in the Rest of Central Region are expected to above S$1,700 psf, thus to make narrow the price gap between the two.
Most market watchers did not see a dampening of residential buying demand, despite Minister for National Development Lawrence Wong’s recent comments to Parliament that the Government would intervene if the property market became too heated, to maintain a stable market.
Nonetheless, while there is a seasonal easing this month and in Dec, when there are traditionally very less new launches in the market, the release of the 735-unit Parc Britannia by Sing Holdings and Wee Hur last Saturday, which sold 230 units over the first week, is expected to buoy Nov. sales figures.
advisors expect primary new home sales by developers to reach 11,000-12,000 units excluding ECs, or 15,000-16,000 units.
Last year, developers moved 7,972 private homes and 3,999 ECs.
Adapted from: The Straits Times, 16 November 2017