http://www.straitstimes.com/archive/...r-end-20131019

4,800 private homes may go on sale by year-end

Logjam of potential launches may see some projects being deferred to 2014

Published on Oct 19, 2013

By Melissa Tan


NEW private residential launches could be back in full swing from this month to the end of the year as developers release some of the pent-up supply.

A bumper crop of about 4,800 new units from 17 launches could go on the market from now till December, consultants estimated.

This is much higher than the 3,342 new units put on sale in the third quarter, though it is still below the 5,564 units launched in the year's first three months.

"Many projects were ready for launch even in September but (the developers) have yet to do so," said Savills Singapore research head Alan Cheong.

But he noted the sheer number of projects waiting in the wings means that it could take some time for all of them to debut.

"Owing to the logjam of potential launches from these projects, it is possible that some may defer till the first quarter of 2014."

There were 76 new projects launched in the first nine months of this year, Jones Lang LaSalle Singapore data shows.

At these projects, 12,033 out of the 15,172 units available had been released for sale as of Sept 30.

Developers intending to launch their projects by the end of this year are running out of time.

"The window of opportunity for a 2013 launch is closing with barely six weeks before the December lull sets in," said Chesterton Singapore research head Elaine Chow.

CBRE executive director of residential Joseph Tan said the lull would begin in mid-December and stretch till Chinese New Year, which is on Jan 31 next year.

Ms Chow added that the quiet period could stretch into early February next year, meaning that developers would have even less time in January through March to launch new units.

However, even if developers were to push out all of those projects before Dec 31, the supply of new units this year would still pale in comparison to last year's figures.

The total number of new units in the first nine months this year was 13,357, according to Urban Redevelopment Authority data.

Adding 4,800 more units in the final three months of this year would bring the figure up to 18,157 units, which would still be far fewer than the 21,657 new units released last year.

Projects that have gone on the market this quarter include Nine Residences as well as The Venue Residences and Shoppes.

The 99-year leasehold Nine Residences in Yishun Avenue 9, part of a mixed development by Chip Eng Seng, released 100 units earlier this month at an average price of $1,070 per sq ft (psf) and sold 60 on launch day. The project has 186 units.

The Venue Residences and Shoppes, a 99-year leasehold mixed development by City Developments (CDL) in Tai Thong Crescent, began preview sales yesterday. The project has 266 apartments and 28 strata retail units.

A CDL spokesman said it had moved "about 65 per cent" of the 50 homes released for preview sale as at 5pm yesterday, at an average price of $1,380 psf.

Hong Leong Holdings will also launch the 396-unit The Inflora at Flora Drive next weekend. The expected average selling price for the 99-year leasehold project is $900 psf, according to agents.

Apart from these projects, consultants reckon that 14 more could go on sale before the end of this year.

One of them is the 99-year leasehold DUO Residences in Bugis by M+S, which is expected to launch early next month.

Others include SingLand's 99-year leasehold project Alex Residences at Alexandra View and the freehold The Creek in Bukit Timah by Chiu Teng.

DUO Residences is expected to sell at above $2,000 psf, Alex Residences at $1,500 to $1,700 psf and The Creek at $1,500 to $1,600 psf, said Ms Chow.

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