Private home sales crashed 28% to 377 units in February

Most developers are timing their project launches, preferring to wait after the Lunar New Year festivities.

Private home sales crashed by 28% from 524 units in January to 377 units in February, the Urban Redevelopment Authority (URA) revealed. This figure is also the lowest recorded since December 2016 where 367 units were sold.

PropNex Realty noted that most developers are timing their project launches, preferring to wait after the Lunar New Year celebrations after the month of March. However, it said, “this figure is commendable despite only 186 units launched in the month, showing signs of strong demand from buyers who are picking up unsold existing units that are rightly priced. The top five best-selling projects are all from existing launches in the market.”

ERA Realty Key Executive Officer Eugene Lim added, “With the Lunar New Year holiday falling in the middle of the month, most buyers were not in the home buying mood.”

Comparing month on month, February witnessed a 32% increase in private home sales in the Core Central Region (CCR) with 45 units sold. In contrast both the Rest of Central Region
(RCR) and Outside Central Region (OCR) witnessed a 21.2% and 40.8% decline in the number of units sold respectively.

A total of 47 units of the previously launched project, Queens Peak were sold in the month of February, making it the best selling project of the month.

PropNex Realty CEO Ismail Gafoor noted that February traditionally witnesses lesser property activities due to the festive celebrations and lack of new launches. “With more new launches lined up in the coming months, we can expect sales to pick up and transactions to increase, with the month of March witnessing approximately more than 500 units sold,” he added.

PropNex said the first quarter of 2018 will likely see the upcoming launches of The Tapestry at Tampines Avenue 10, The Enclave @ Holland and Rivercove Residences EC, “Great demand is expected for Rivercove Residences in April as it is the only Executive Condominium launch in Singapore for the whole of 2018.”

Lim also noted that strong interest has been observed at the showflat on the opening weekend, and it is expected it to be well received by buyers. The second phase of Park Place Residences at Paya Lebar Quarter is also scheduled to be previewed on 24 March, he added.

Ismail added that with a new record land bid price for Sumang Walk EC site ($583 psf ppr) announced in March 2018, home buyers and upgraders will be propelled to make a move to purchase existing stocks of ECs available, before prices increase in the market. “Total of 92 units of ECs were sold in February. Similarly, the current positive market sentiments are also driving buyers and investors to make a move to purchase their private homes this year,” he said.

Meanwhile, Lim is expecting developer sales to reach 12,000 to 14,000 private residential units and 800 to 900 ECs in 2018. “For private residential units, this represents at least a 13% increase in transactions over 2017,” he said.