Developer home sales jump 51% m-o-m in September
Developers sold 932 private residential units out of 1,169 units launched in September, according to URA. The total sales volume was a 51% jump from August’s 616 units, due to strong response at the launches of JadeScape and Mayfair Gardens.
The 1,206-unit JadeScape sold 327 units (68%) out of 480 units launched and achieved a median price of $1,669 psf. Meanwhile, the 215-unit Mayfair Gardens sold 82 units (82%) out of 100 units launched and recorded a median price of $1,945 psf. These two projects account for 44% of total units sold by developers in September. Other already-launched projects - namely Stirling Residences, Park Colonial, and Riverfront Residences – continued to sell units, achieving median prices of $1,743 psf, $1,751 psf, and $1,320 psf respectively in September.
Tricia Song, Colliers International head of research for Singapore, says the developers’ sales performance “reflected strong underlying demand for homes, especially for those that are well-located and priced realistically”.
The recovery in September this year from the property cooling measures implemented in July, is similar to 2013 when the Total Debt Servicing Ratio was implemented in June that year, notes Song. In 2013, developer sales jumped 57% m-o-m to 756 units in August, from 482 units the month before, she adds.
Strong developer sales in September were expected as the property market returns to normalcy after the unexpected implementation of property cooling measures in July, says Lee Sze Teck, Huttons Asia’s head of research. Eugene Lim, key executive officer at ERA Realty Network, agrees, saying that buyers are “slowly coming to terms” with the latest property cooling measures. Lee also attributes the September rise to more project launches and the end of the Lunar Ghost Month.
Homebuyers waiting on the sidelines may have decided to make their purchases in September, as prices had remained stable, notes Christine Sun, head of research and consultancy at OrangeTee & Tie. “Some buyers may have switched their buying interest to new private homes, as prices of resale homes are holding firm. Individual resellers may have been reluctant to drop their prices as the economy and job market are still healthy,” she adds.
The last quarter of 2018 is expected to see more than 3,500 units launched for sale. These include large-sized projects such as the 1,399-unit Parc Esta in Eunos, the 716-unit Whistler Grand in West Coast, and the 548-unit Kent Ridge Hill Residences in Pasir Panjang. “With such a wide selection of new projects coming up, buying demand is not expected to increase significantly as buyers evaluate their housing needs, options, and finances,” says ERA’s Lim. No significant price discounts have come up as most developers have their prices fixed due to high land prices, he adds.
For the full year, private new home sales are expected to fall to between 8,500 and 10,000 units (excluding ECs), 15-20% lower than last year’s 10,566 units, according to various consultants.
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