Developer sales reduced by 11.6% with 745 private homes selling in April from 843 sold in March 2016. Y-o-y sales volume was also 36.2% lower. The reduced sales were due to fewer launches since only Sturdee Residences was launched in April. It is also last month’s bestseller having sold 126 units at an average price of $1,620 psf and a 41% take up rate.
April sales figures show that demand for already existing projects is still strong. As noted by Desmond Sim, Head CBRE Research, other than the Sturdee Residences new launch, projects prices have remained steady, which indicates that the market’s price decline is in a trough and prices are steadying.
Source from Straits Times
Ong Teck Hui, National Director, Research & Consultancy at JLL comments, “The encouraging sales pick-up in March seems to have led some older projects into launching more units in April but take-up was generally gradual. There was just not enough demand to match the 900 units placed on the market and this indicates that market confidence is still lacking in spite of the recent uplift in sentiments."
Botanique at Bartley lags behind with a sale of 52 units at average price of $1297 psf.
Despite the two executive condominium launches being in Sembawang, The Visionaire, which is the first EC smart home in Singapore, had triple of Parc Life demand at 154 units being sold at an average price of $821 psf. Parc Life sold 51 units at an average price of $754 psf.
According to Eugene Lim, key executive officer ERA, ECs may be back in trend as more owner-occupiers turn to them due to their affordability and more space.
Lee Nai Jia, South East Asia DTZ Research head notes that with a more uncertain economy and the weight of ABSD on their decision, most buyers prefer to wait unless the project has very attractive pricing and location.
However, May and June data will better indicate whether demand is weakening further or not.