Singapore Property | The market is showing positive signs of improvement both in the primary and the resale market. This year has seen developers sell 7,551 apartments and condominiums, more than 6,895 recorded in 2015, based on early December caveats lodged. While including executive condominiums and landed homes, the sales recorded for the year was 11,430 and increase of 15% from what was recorded in 2015.
In the resale market, more units were sold with the highest increase being in the Core Central Region which recorded an increase of 17% from the 1,094 recorded in 2015 to this year’s sales of 1,285. The figures did not include units sold in delicensed projects such as OUE Twin Peaks, D’Leedon and Ardmore Three.
Rest of Central Region recorded a 9% increase while Outside Central Region had a 6% increase. This has resulted in the resale prices of apartments and condominiums to remain firm.
An L-shaped recovery is expected in the market in 2017 based on economic data and slugging employment. However, the unemployment rate remained flat for Singaporeans while IMF has projected a minor improvement in the world economy in 2017. Nonetheless, the rising vacancy rates could tip the balance.
The primary market sales increase was due to the projects price points and having attractive locations. The bestseller was 710 unit Lake Grande by MCL Land with 549 units sold at $1,359 psf. The second was Forest Woods with 381 units sold at an average price of $1,410 psf while The Alps Residences had 356 units sold at $1,072 psf average price.
Queens Peak and Gem Residences topped the chart in the city fringe. Gem Residences had 305 units sold at an average price of $1,434 psf. At Queens Peak, 275 units were sold at an average price of $1,629 since its launch in November.
The Cairnhill Nine, a mixed-use development was the high-end segment best-seller with CapitaLand selling 220 units. Approximately 57% of the units were sold below $2 million.
Among the delicensed projects, Ardmore Three had 46 units of its 84 freehold units sold, with its developer, Wheelock Properties, offering buyers 15% rebate on ABSD and 15% discount. OUE Twin Peaks had 210 units sold since April when it started offering a deferred payment scheme. CapitaLand sold 85 units at D’Leedon since June when it started the stay-then-pay system.
Due to high primary market sales, the number of unsold private non-landed units has reduced from 22,583 recorded in 2015 to 21,142 recorded in 2016. However, delicensed projects have about 2,500 to 3,000 of additional units that are unsold especially in the CCR.
There will be about 9 potential launches of private non-landed units in 2017, based on tender award dates for Government Land Sales sites.
One of the sites is for Seaside Residences on Siglap Road, an 840 unit developments set to complete in 2023.
8 Martin Residences, Martin Place by GuocoLand is another residential development near Great World MRT which can yield about 450 units.
Five residential sites will be launched by the government under GLSP in the first half of 2017.