In May, developers sold 1,121 new private homes, a 7.9% y-o-y increase, or a jump of 53.1% over 732 units sold in April, according to URA data. The sales in May marked the highest since August 2017, when 1,246 units were sold, says Tricia Song, Colliers International head of research for Singapore.
Altogether, there were five new projects launched in May, which contributed to the strength of new home sales. Twin Vew was the top performer with 87% of units sold, or 454 out of 520 of units, at an average price of $1,385 psf. Amber 45 saw 86% or 86 out of 100 units released sold at an average price of $2,378 psf. Sixteen35 Residences saw 45 units sold out of 60 units launched, at an average price of $1,511 psf. Meanwhile, 120 Grange saw 37 out of 56 units in the development sold at an average of $3,141 psf. Sea Pavilion Residences along Upper East Coast Road saw 14 out of 24 units taken up, at an average price of $1,852 psf.
The five new launches accounted for 71% of the total units launched, says Ong Teck Hui, national director of research & consultancy at JLL. Twin Vew alone contributed to 41% of private new home sales in May, he added.
However, as developers have raised prices for new launches, take-up rates have slowed, notes Colliers’ Song. On the other hand, units in projects launched earlier, and at lower psf prices, have been snapped up, she adds. She points to Twin Vew, where median price of units sold was at least 11% higher than the median price of $1,246 psf at the adjacent Parc Riviera a year ago. She attributes the strong sales at Twin Vew to its proximity to the Jurong Lake District, poised as Singapore’s second CBD, despite the High Speed Rail project being derailed.
Despite positive market sentiments, JLL’s Ong points out that the number of units sold in the first five months of 2017 - 5,568 units - is still higher than the number of units sold in the first five months of 2018, i.e., 3,434 units. “The implication is that sales will have to pick up strongly especially in the second half of 2018 if 2017’s new home sales of 10,566 units is to be matched or surpassed,” he says.
According to ERA’s key executive officer Eugene Lim, five more new launches are expected to be put on the market in the next few months: the 1,259-unit Stirling Residences, the 805-unit Park Colonial, the 327-unit Daintree Residence, the 1,472-unit Riverfront Residences (former Rio Casa) and the 1200-unit Jadescape (former Shunfu Ville). Marina One is also expected to launch its second tower of 521 units. On the back of the new launches, ERA expects sales to reach 11,500 to 13,000 private residential units and 1,000 to 1,100 ECs in 2018.
However, sales momentum is expected to slow in June, adds ERA’s Lim, as there is weaker buying demand due to the school holidays.