19.5% fall in new private home sales

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19.5% fall in new private home sales

Published on Jul 17, 2012


SALES of new private homes remain on a slow descent with turn-over again down in June - the second consecutive month of decline.

Last month, 1,371 units were shifted - the lowest monthly total since December - and down 19.5 per cent from May's 1,704 units.

If executive condominium transactions are included, new home sales totalled 1,725 units last month, said the Urban Redevelopment Authority (URA) yesterday.

The quarterly picture reflects the same trend: 5,572 units were sold in the three months to June 30, about 17 per cent down on the 6,682 sales in the first quarter.

This is the biggest quarter-on- quarter drop since the last three months of 2009, when new home sales plunged 66.6 per cent from the previous period. But experts said June's showing was down to the school holidays and there being few large launches and was not a sign of weakening demand.

URA data showed suburban condos fared the best, with 1,111 units sold, while city fringe projects moved only 119 units.

AMANDA TAN

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Mass market moving amid fall in private home sales

Published on Jul 17, 2012

By Amanda Tan


SUBURBAN condominium launches dominated new private home sales last month although activity was down overall.

There were 1,111 new mass-market units moved out of 1,371 total sales, excluding executive condos, said the Urban Redevelopment Authority (URA) yesterday.

But last month's sales total was a 19.5 per cent drop from the 1,704 units sold in May - a showing experts blamed on fewer launches and the June school holidays rather than weakened buying interest.

Last month's suburban sales were driven mainly by the launches of Tropika East in Eunos, Sea Esta in Pasir Ris and Punggol's River Isles.

The developers of these three condos moved more than half of the 920 units they released in total, noted Dr Chua Yang Liang, Jones Lang LaSalle's regional research head.

There were also sales at older launches like Flamingo Valley and Seahill.

The activity around the three new condos failed to offset the overall slump, leaving suburban sector sales 8 per cent below May's level.

High-end homes in the core central region posted second-best results, with 141 units moved and was the only region to record higher sales last month than in May.

This was due mainly to 1919 at Mount Sophia, which sold 74 out of 75 units at a median price of $2,042 per sq ft (psf).

City fringe flats fared the worst, with just 119 sold, well down from 362 in May.

The URA numbers overall tell a story of slow decline. The 1,704 new home sales in May was 32 per cent down on April's 2,497 units.

The last time sharply was in December after more cooling measures. Sales then plunged over 60 per cent to 632 from November's 1,702. But last month's showing did not surprise property consultants, who noted that just 1,303 units were launched, down 47 per cent from May.

Mr Alan Cheong, Savills Singapore research head, said the sales figures do not 'belie any weakness in housing demand caused by deteriorating economic conditions?, and that developers and buyers will be back in full swing soon.

Falling sales could ease the pressure on the Government to impose more cooling measures.

'Certain segments of the market are already being weighed down by the existing curbs. Any additional measures would increase the risk of a sharp correction if the market were to soften suddenly,'said SLP International head of research Nicholas Mak.

Still, the 1,371 units sold last month exceeds the 1,303 units launched and it also beats a monthly sales average of 1,341 units between the two boom years of 2010 and last year, noted Mr Mak.

He added that the figure is also more 'sustainable'than some levels seen in recent months, when sales have exceeded 2,000 units.

New and upcoming launches like Parc Olympia, Parc Centos and V on Shenton should boost July sales but 'buying euphoria'could ease as pent-up demand is gradually met, said Colliers International's director of research and advisory Chia Siew Chuin.

This could mean 20,000 to 22,000 new private homes being sold this year, she said.

Businessman Henry Na, 45, recently bought a four-bedder at River Isles in Punggol for over $1 million, attracted by its proximity to amenities and its price.

'Given this location, furnishings... You can't find such a price anywhere,'he said.

'Initially I was hesitant (due to fears over the economy), but I'm buying it for my own stay and so long as I hold on to it, I'm not too worried,'he added.

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Last month's top-selling projects

RIVER ISLES

Units sold: 263

Units launched: 442

Average price: $835 psf

SEA ESTA

Units sold: 255

Units launched: 376

Average price: $906 psf

1919

Units sold: 74

Units launched: 75

Average price: $2,042 psf

FLO RESIDENCE

Units sold: 62

Units launched: 371

Average price: $820 psf

TROPIKA EAST

Units sold: 59

Units launched: 105

Average price: $1,312 psf