Executive condos chalk up bumper sales

[reporter2]

Executive condos chalk up bumper sales

Aug 16, 2017

978 units snapped up in July; analysts tip improved buying momentum for rest of year

Lee Xin En


Executive condominium (EC) sales hit fever pitch last month, which saw the highest figure recorded since monthly data became available in 2007.

Buyers snapped up 978 units, boosting total sales of private and EC homes to 2,086 - nearly double the 1,064 units sold in June.

The number of EC units sold last month was also around 17 per cent higher than the 838 shifted in the same month last year, which had recorded the highest monthly EC sales figure since November 2014.

July's strong sales numbers, which were released by the Urban Redevelopment Authority yesterday, are likely due to projects such as the Hundred Palms Residences EC in Yio Chu Kang Road, which sold all 531 units at its launch at a median price of $834 per sq ft (psf).

Other popular ECs included iNz Residence in Choa Chu Kang, which sold 65 units at a median price of $796 psf, and Parc Life in Sembawang, where 63 units went at a median price of $790 psf.

Mr Nicholas Mak, ZACD Group's head of research and consultancy, noted that excluding the sales of Hundred Palms Residences, 447 EC units were sold, which is far higher than the monthly average of about 250 units over the past two years.

He said: "The demand for ECs has jumped significantly in July and is expected to increase due to the projected widening price gap between the prices of HDB resale flats and mass-market condominium units.

"As there is only one executive condominium yet to be launched, there could be a looming shortage of EC units in the primary market."

Ms Tricia Song, Colliers International's Singapore research head, noted that four ECs were among the top 10 selling projects last month, moving between 62 and 65 units, compared with the typical 10 to 40 units per month.

Excluding EC units, the number of new private homes sold last month jumped by 35 per cent to 1,108 units from June's 820 units.

July's sales were comparable to the 1,092 units moved in the same month last year.

The top-selling condo last month was high-end Martin Modern in Martin Place, which moved 109 units. The Santorini in Tampines followed with 82 units.

"The property market is now out of the thawing state and has gone into sous vide mode," said Mr Desmond Sim, CBRE research head for Singapore and South-east Asia.

All in all, developers sold 7,675 private residential units in the the first seven months of the year - up 56.4 per cent on the same period last year - while 3,061 ECs have been moved, a 12.3 per cent increase.

Mr Sim noted that new home sales this year have already reached the 7,000 to 8,000 annual average of the preceding three years.

"That range had been identified as underlying demand, and we are now seeing the possible swing of pent-up demand coming into the market," he added.

Mr Sim noted that the strong EC take-up last month was not surprising as the premium between private residential and EC prices had widened due to higher land bids.

Analysts are tipping improved buying momentum for the rest of the year, although the Hungry Ghost Month that starts next Tuesday could slow sales.

Mr Ong Teck Hui, JLL's na- tional director of research and consultancy, said that last month's home sales show that buyers are "also purchasing from previously launched projects, with many of these enjoying encouraging sales progress and reducing unsold inventory".

He predicts that total sales for the year will be between 11,000 and 12,500 units, while Mr Mak of ZACD forecasts a figure between 12,000 and 14,000 units.

[reporter2]

Buying momentum buoys July sales of private and EC homes

August 16, 2017

Lynette Khoo


DEVELOPERS sold almost twice as many private homes and executive condominiums (ECs) in July than they did in June amid two project launches - reflecting a buoyant buying momentum that analysts believe will continue for the rest of this year and the next.

A total of 2,086 units were sold by developers here last month, up from 1,064 units in the traditionally slow month of June and 8 per cent more than in July last year.

Particularly strong sales momentum was seen in the ECs, which marked the highest monthly sale of 978 units - four times that in June and 17 per cent more than a year ago.

This was bolstered by the sell-out of Hundred Palms Residences, an EC project in Yio Chu Kang Road by Hoi Hup Realty; all 531 units were sold within seven hours of its launch on July 22.

Excluding ECs, developers sold 1,108 private residential units in July, a 35 per cent increase from June and marginally (1.5 per cent) more than in July last year. Slightly more than half the July sales were in the suburban region.

These figures came from the Urban Redevelopment Authority on Tuesday, derived from a survey of licensed developers.

Desmond Sim, who heads CBRE Research for Singapore and South-east Asia, noted that July's stellar showing brings the new private home sales in the first seven months of this year to 7,147 units, already touching the 7,000-8,000 range of average annual new home sales from 2014 to 2016.

Potential buyers have likely come to terms with the prevailing cooling measures and have been prompted to act on news that a possible uptick in pricing is looming, he said.

But such an uptick would come only as a result of recent aggressive land-bidding patterns by developers, market watchers noted.

ERA Realty key executive officer Eugene Lim said that as the recent uptrend in land prices suggests higher prices for new projects next year, many buyers are deciding to commit to a purchase now rather than later.

"Coupled with the shorter holding period of three years under the revised seller's stamp duty rules, this has made projects under construction a very attractive option to home buyers," he said.

He noticed that more developers are starting to launch units in phases to capitalise on future upside. These include Park Place Residences at Paya Lebar Quarter, Martin Modern and Le Quest.

Martin Modern in district 9, by Singapore-listed GuocoLand, sold 109 units at a median price of S$2,152 per square foot; the developer is said to be moderating the releases to capture future price upside.

ZACD Group executive director Nicholas Mak said: "The improved buying momentum in the residential property market is likely to continue in the coming months and into 2018, as confidence returns to the market.

"At the pace of the current primary residential market sales, developers could sell between 12,000 and 14,000 new private homes this year," he said, but flagged a possible shortage of EC units for sale, given that there is only one EC project in the pipeline.

The EC project in Anchorvale Lane by Hoi Hup Realty-Sunway Developments, with between 640 and 650 units, is more likely to be launched next year, after the mandatory 15-month waiting period for the sales to begin.

Mr Mak said: "At the current rate of sales, the developers' inventory of launched and unsold EC units would be exhausted before Christmas if there are no new launches."

July's sales brought the developers' stock of launched and unsold units to a six-year low. But only a handful of new condominium projects are lined up for launch in the next six months.

Upcoming property launches include New Futura, a freehold high-end residence with 124 units by City Developments Ltd; Kandis Residence, a 130-unit condominium off Sembawang Road by Tuan Sing Holdings, and the 600-unit project at Fernvale Road by Sing Development and Wee Hur Development.

OrangeTee head of research and consultancy Wong Xian Yang said good sales volumes, even at existing launches, suggest that market demand remains broad-based, raising the possibility of an impending stabilisation in prices.

MCC Land sold another 82 units at The Santorini in Tampines at a median S$1,039 psf, bringing the number of unsold units in the 597-unit project down to nine. EL Development moved another 73 units at Symphony Suites at a median S$1,035 psf.

With the cooling measures expected to stay put, Mr Wong said the market is expected to remain quantum-sensitive and developers are expected to lean towards a unit mix that favours smaller unit sizes to match the market's current levels of affordability.