Developer sales dropped by 11.6% after its huge climb in March 2016, from 843 private homes in March to 745 private homes in April 2016. Sales volume was 36.2% lower y-o-y. The drop in sales was a result of fewer launches, with only, Sturdee Residences, launched in April 2016.
Sturdee Residences also happens to be the best-selling project last month, with 126 units sold, at a median price of $1,620 psf. The project had a take-up rate of 41%.
The April sales numbers show that underlying demand is still strong for existing projects, according to Desmond Sim, Head of CBRE Research (Singapore and South East Asia). “This is in addition to the new launch of Sturdee Residences, which has sold 126 units. It is noteworthy that these projects have kept prices relatively steady, an indication that the market is reaching a trough in price declines and entering a steady state.”
Ong Teck Hui, National Director, Research & Consultancy at JLL comments, “The encouraging sales pick-up in March seems to have led some older projects into launching more units in April but take-up was generally gradual. There was just not enough demand to match the 900 units placed on the market and this indicates that market confidence is still lacking in spite of the recent uplift in sentiments."
Botanique at Bartley trails behind with 52 units sold at a median price of $1,297 psf.
Sales of Executive Condominium (EC) units by developers rose by 12.5% on the back of two new launches, with 546 units moved in April as compared to 485 units sold in March. The two best-selling EC projects were The Visionaire and Parc Life, which were launched in the month.
Although both ECs were in Sembawang, The Visionaire, Singapore’s first smart home EC, saw triple the demand of Parc Life, with 154 units sold at a median price of $821 psf. In comparison, Parc Life sold 51 units at a median price of $784 psf. The Visionaire is located adjacent to The Brownstone EC and is within walking distance from the upcoming Canberra MRT station.
“ECs may be back in vogue now more owner-occupiers turn to ECs for their affordability and more spacious units”, says Eugene Lim, key executive officer of ERA.
DTZ research head for Southeast Asia, Lee Nai Jia, notes that as the economy becomes more uncertain, with ABSD weighing on the buyers’ decisions, more buyers prefer to stay put unless they find the project very attractive, in terms of its pricing and location. Notwithstanding, the release of May and June’s data will give a better indication on whether there is a further weakening of demand or not.
Top selling private projects in April 2016
Top selling EC projects in April 2016