Singapore Property | According to a report published on Channel NewsAsia relying on data from Urban Redevelopment Authority, property developers moved 433 residences in January compared to 602 units sold in December. This represents a 28 percent drop.
The sales for last month also dropped by 17.8 percent in comparison with the 527 units moved over the same duration a year ago, with executive condos (ECs) excluded.
The January’s sale results depict a “very different” mood compared to last year when opinions were more optimistic at the beginning of the year, pointed out Desmond Sim, head of research at CBRE. Sim is in charge of research matters not only in Singapore but also in Southeast Asia.
Some analysts attribute the decline in sales last month to the absence of property launch in the Rest of Central Region (RCR) as well as Outside Central Region (OCR). In fact, all three new developments deployed to the market in January – Fourth Avenue Residences, Fyve Derbyshire and RV Altitude – all came from the Core Central Region.
Christine Sun, who works as the research and consultancy head at OrangeTee, said, “Sales volume tend to increase when OCR and RCR launch large-scale projects as prices are always lower and affordable to more buyers.”
“Many prospective buyers tend to travel overseas in the course of the long holiday weekend that comes with the Lunar New Year. For this reason, many property developers may delay their launches to avoid slowing down the sale momentum because sales are generally lower throughout the festive season,” she added.
Fourth Avenue Residences managed to move 74 units at an average price of $2,412 psf, Fyve Derbyshire moved 11 units at an average price of $2,382 psf, and RV Altitude found buyers for 19 units at an average price of $2,858 psf. Looking into the future, expert analysts expect supply to drive this year’s demand. Some of the properties expected to hit the market this year include the Hougang’s 1,140-unit The Florence Residences and Treasure @ Tampines with 2,203 units.