Singapore Property | There were 6,020 private residential units launched and 10,566 units sold in 2017, which means that the sales outnumbered the units launched, according to Nicholas Mak, executive director, ZACD Group. Developers recorded 32.5% more private home sales in 2017 in comparison to 2016. Some of the 2017 launches include Carpmael 38 at District 15 and Kismis Residences in District 21.
Inventory of units launched but unsold reduced by 52% to 3,407 in quarter 4, 2017 in comparison to 7,237 units recorded in quarter 4, 2016.
“Since the primary market had fewer launches in 2017, private homes buyers opted for the resale market. The secondary resale volume also included the collective sales. Some collective sales owners contributed to the high rise in resale transactions since they needed to purchase replacement homes,” added Mak.
“Total secondary market sales rose to a 5-year high in 2017 to 14,444 units, 36.7% higher than the primary market sales of 10,566 units,” said Ong Teck Hui, Director Research and consultancy, JLL.
The overall transactions for both primary and secondary property market in 2017 were 25,010 units, an increase of 52.7% from 2016, added Ong.
The prices of private homes have been kept on an upward trend by the twin effect of returning buying interest and fewer new launches. The 4Q 2017 overall price index rose by 0.8% q-o-q while in Q32017 it had risen by 0.7% q-o-q.
Ong observed that the positive growth in the 2 consecutive quarters indicates that there is price recovery and a reversal of price decline of the past 15 consecutive quarters.
Therefore, property prices for private residential units increased by 1.1% in 2017 in comparison to the decline of 3.1% in 2016.
Tricia Song, Head of Research, Colliers International is expecting prices to recover in 2018 by 5% in line with the better GDP growth.
“The poor supply in the coming 3 years could also support price recovery, added Song.
The supplied units reduced in 2017 by 20.9% from the 2016 peak and they are intended to reduce further over 2018-2021.
However, Song warned that beyond 2021, the supply could increase due to the redevelopments of the present collective and en bloc sales activity.
Don’t miss the 2018 launches. Visit New Futura for luxurious developments, Belgravia Villas Phase 2 for strata landed houses, Nim Collection for landed property and 70 at Truro for District 8 condominiums.