Singapore Property | We saw three private residential developments launched for sale last month. However, only 103 units out of the cumulative 687 apartments were sold, which is a low overall rate of occupancy based on a recent Credit Suisse’s report. Developer Allgreen Properties managed to sell 70 units out of the possible 476 units at the Fourth Avenue Residences, translating to an occupancy rate of around 14.7 percent.
Bukit Timah, a state-of-the-art 99-year leasehold property in the heart of District 10 surpassed analysts’ expectations by registering an impressive standard average selling price (ASP) of $2,375 psf given that the neighbouring Mayfair Gardens managed ASPs of between $1,900 and $2,000 psf in September when it was launched for sale.
Likewise, Developer Roxy Pacific unveiled two freehold properties over the weekend – the Fyve Derbyshire with 71 units located beside Derbyshire Road in Prime District 11 and the RV Altitude with 140 units situated along River Valley Road in the rapidly growing District 9.
Fyve Derbyshire moved 13 units or 18 percent of its collective units launched for sale and attained ASPs of between $2,200 psf and 2,700 psf. RV Altitude sold 20 units or 14.28 percent of its cumulative units availed for sale and achieved ASPs of between $2,729 psf and $3,100 psf.
According to Credit Cruise, the low total number of units moved and the unimpressive occupancy rate of 15 percent were within analysts’ expectations since the ASPs were still healthy.
“Due to the high pricing hopes by developers along with buyer anticipations of bargains with about 24,567 apartments from 76 projects availed for sale in 2019, we anticipate the trend of low occupancy rate to continue in 2019,” Credit Cruise added. Credit Cruise also predicts a 25 percent year-on-year drop in private home sales to 17,611 units for the entire 2019. Precisely, primary market transactions are expected to fall by 10 percent to 8,178 units. Resale deals could register a greater drop by 35 percent to 9,433 units.