Singapore Property | With a strong sale of private homes in October 2017, developers should end 2017 on a high note just when the government warned that it could intervene to reduce the overexcitement in the property market.
According to Nov 16 URA data, there was an increase of 7% in October sales of new private homes and ECs to 969 from what was recorded in September.
The month of October also had more units launched at 242 units an increase from the 73 units launched in the previous month.
Excluding Executive Condominiums (EC), there were 758 private homes sold in October, an increase of 15.4% from the units sold in September, based on URA data.
The top sellers in October were projects launched earlier that include GuocoLand’s Martin Modern, Sophia Hills a joint development by Sunway Developments and Hoi Hup Realty as well as iNZ Residence by Qingjian Realty.
“With few new launches that buyers can select from, they continued to buy homes from projects launched earlier”, observed Tricia Song head of research and director Colliers International Singapore.
Indicating the improved outlook for the high-end units, October’s private residential projects that were top-sellers were in the CCR. Sophia Hills in District 9 had 62 units that fetched $2,029 psf average price while Martin Modern in the same area had 47 units sold at an average price of $2,343 psf.
On October 2 low-key projects that were launched included Roxy-Pacific Holdings’ The Navian, in which 24 of its 48 units were launched and 12 were sold at $1,543 psf average price and Lim Wen Heng’s Carpmael Thirty-Eight that had 16 units launched.
The Outside Central Region or the suburban region took 44% of the private homes that developers sold in October. However, it was in the Core Central Region that there was the highest rise in transactions of 143% to 141 homes in October 2017 from what was recorded in October 2016. Ismail Gafoor, CEO PropNex Realty, credited this to price.
“The property prices today in the CCR of from $2,000 and $2,300 psf are seen as very attractive since the 2018 new launches in the RCR are forecasted to go over S$1,700 psf and therefore narrowing the gap in price between the 2 regions”, said Ismail.
Majority of market watchers do not expect the demand for residential property to dampen.
However, Lee Nai Jia research head Edmund Tie and Company felt that Lawrence Wong, National Development Minister’s latest remarks to parliament that the government intends to interfere if there were too much heat in the real estate market to keep it stable, could affect the buying sentiment.
Even so, while the month of November and December may have seasonal easing when traditionally there are fewer launches, the Parc Botannia release, a 735-unit project by Wee Hur and Sing Holdings on 11 November and whose 230 units were sold in that 1st weekend is anticipated to boost November sales.
For the whole year, consultants are expecting developers’ primary new homes sales to reach between 11,000 and 12,000 units without executive condos or between 15,000 and 16,000 including ECs.
In 2016, developers sold 3,999 ECs and 7,972 private residential homes.