Sales of new private homes leap 83% in April

[reporter2]

http://www.straitstimes.com/archive/...april-20150516

Sales of new private homes leap 83% in April

But gain over March mainly from two newly launched condominiums

Published on May 16, 2015 1:06 AM

By Rennie Whang


NEW private home sales jumped an eye-catching 83.4 per cent last month from March.

But experts say the strong upswing is unlikely to herald a market rebound as it was largely driven by two newly launched projects. The two large condominiums - in Yishun and Bartley - were launched at competitive prices that drew buyers.

Developers sold 1,124 new private homes last month, when 1,344 units were launched, according to figures released by the Urban Redevelopment Authority yesterday.

It was the largest number of sales since May last year, and far higher than the 613 homes sold and 400 launched in March.

But experts cautioned against reading the jump as a broad-based recovery in sentiment as nearly two-thirds of the sales - 65.8 per cent - were from these two launches, which were priced to suit the market.

At the 920-unit North Park Residences, which led sales with 486 units transacted at a median price of $1,374 per sq ft (psf), 73 per cent of caveats lodged so far are for units priced below $1.2 million, noted Mr Eugene Lim, ERA Realty key executive officer.

Mr Elson Poo, general manager of marketing and sales at Frasers Centrepoint Homes, said: "Our studio and two-bedroom units have been the most popular, with quantum ranging between $620,000 and $695,000 for studio and $864,000 to $1 million for a two-bedroom unit." Studios are sized at about 431 sq ft while two-bedders are from 624 sq ft.

At Botanique at Bartley, which was the next biggest seller at 254 units sold at a median price of $1,290 psf, 84 per cent of units sold were less than $1.2 million, based on caveats, said Mr Lim.

More than 70 per cent of its 797 units are priced below $1 million, with one-bedders from 495 sq ft and $598,000, and two-bedders from 657 sq ft and $798,000.

A third new launch last month was 84-unit Neem Tree in Balestier, which put 24 units on the market but did not sell any.

Stellar sales at North Park Residences and Botanique at Bartley boosted sales numbers in the suburbs, where 975 units were sold in the month.

In the city fringe, 113 units were sold, led by Sims Urban Oasis, which was launched in February and sold 41 units at a median price of $1,411 psf last month. Another 17 units were picked up at City Gate in Beach Road at a median price of $1,880 psf.

Apart from these two projects, interest remained subdued at other projects in the region - even as units were released from previously launched developments, including The Orient in Pasir Panjang and The Venue Residences in Potong Pasir, said Colliers International director of research and advisory Chia Siew Chuin.

Launch and sales activity stayed muted in the central region, with 11 units relaunched at Greenwood Mews and Novena Regency. In all, 36 units were sold in the region.

The overall sales figure for the month, including executive condominiums, a public-private housing hybrid, was 1,218 homes, a 76 per cent rise from March.

Developers are expected to sell fewer units this month, in view of a dearth of new launches in the month so far, said OrangeTee research manager Wong Xian Yang.

And while North Park Residences, a "unique development integrating retail, residential and transport connectivity", certainly moved sales, subsequent months' sales performance will depend on the sales progress of large projects launched recently, and whether significant fresh launches will keep the momentum going, added JLL national research director Ong Teck Hui.

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UNITS SOLD

North Park Residences

486

Botanique at Bartley

254

2 in 3 North Park Residences buyers are HDB upgraders

NORTH Park Residences in Yishun appears to be popular among upgraders, said Mr Elson Poo, general manager, marketing and sales, at Frasers Centrepoint Homes.

About two in three buyers are current HDB dwellers. Another 20 per cent have a private non-landed address, and 14 per cent have a private landed address. A small number have foreign addresses.

Most buyers are aged 31 to 50 and most of those from this age group are also upgraders from HDB flats, Mr Poo noted.

The 920-unit project has sold 526 of 670 units released so far, or 78.5 per cent, with an average selling price of $1,300 to $1,400 per sq ft.

Two-thirds of units sold are two-bedders or smaller, reflecting the overall mix of units at the project, which has studios to five-bedroom units.

"We have sold about 80 per cent of our studio-style Suite units, indicating an upward trend of homebuyers investing in smaller-sized apartments," said Mr Poo.

RENNIE WHANG

[reporter2]

http://www.businesstimes.com.sg/real...-11-month-high

Developer sales in April hit 11-month high

But volume is slated to slump again this month as there is no major private housing project launch in the offing

By Kalpana Rashiwala

[email protected]@KalpanaBT

May 16, 2015


DEVELOPER sales of private homes, excluding executive condominiums (ECs), surged in April to an 11-month high of 1,124 units but the volume is expected to ease dramatically again this month - as no major launches are expected.

Property consultants stressed that the 83.4 per cent increase in developer sales from 613 units in March, as well as the 47.5 per cent year-on-year improvement from 762 units in April 2014, was due to two large project launches - Frasers Centrepoint's North Park Residences in Yishun and UOL Group's Botanique at Bartley. With sales of 486 units and 254 units respectively, the two projects accounted for nearly 66 per cent of April's volume.

The Urban Redevelopment Authority (URA) released the April data on Friday.

The near-doubling month on month in the number of private residential units that developers sold came amid a more-than-trebling in the units launched - 1,344 in April, from 400 in March. Supply-led demand has set in as a pattern in Singapore's private residential property market for some time now, note market watchers.

"While it can be said that there has been an improvement in primary market activity, it would be premature to say that market confidence is returning," said JLL national director Ong Teck Hui.

Agreeing, Colliers International director Chia Siew Chuin noted that buyers of North Park Residences and Botanique at Bartley were drawn by the attributes of these projects (including their proximity to MRT stations) as well as their reasonable pricing.

Based on ERA Realty's analysis, 73 per cent of caveats lodged by buyers of North Park Residences were for units below S$1.2 million. For Botanique at Bartley, the figure was 84 per cent.

"Buyers are extremely price and product sensitive," said Eugene Lim, ERA key executive officer, "as most are affected by the loan curbs such as the total debt servicing ratio, and demand-side measures such as the additional buyer's stamp duty."

Elson Poo, general manager, marketing and sales, at Frasers Centrepoint Homes, said that one and two-bedroom units in North Park Residences have been particularly popular.

The 920-unit project will be part of an integrated mixed-use development, Northpoint City, coming up opposite Yishun MRT Station. Besides having retail space (that will be integrated with the group's existing Northpoint Shopping Centre), the project will include a bus interchange.

SLP International executive director Nicholas Mak noted that based on URA's data, North Park Residences did better in April than Botanique at Bartley - despite the former having a higher median price. A total of 486 units, or 52.8 per cent of the project's total 920 units, were sold last month at a median price of S$1,374 per square foot.

For Botanique at Bartley, 254 units or 31.9 per cent of the total of 797 units were sold at a median price of S$1,290 psf in April. "This shows," said Mr Mak, "that residential projects that offer proximity to both MRT stations and malls still attract more buyers than those near MRT stations but without any nearby retail amenities."

Frasers Centrepoint said on Friday that to date, it has sold 526 of the 670 units released at North Park Residences, with Singaporeans accounting for 88 per cent of buyers.

URA's data showed that several earlier launches achieved double-digit sales in April. These include Sims Urban Oasis, with 41 units transacted at S$1,411 psf median price, The Panorama in Ang Mo Kio Avenue 2 (39 units at S$1,229 psf median price) and Symphony Suites in Yishun Close (29 units at S$1,042 psf median price).

For May, if there are no major launches, primary-market sales volumes could drop to about 300-400, predicts Desmond Sim, head of Singapore and S-E Asia at CBRE Research.

Colliers' Ms Chia too expects the May volume to moderate to 400-700 units as launches slow down. "Going forward, homebuyers are expected to keep on their toes, amid multiple headwinds that have created a mood of tentative sentiment, committing only if they perceive a decent value proposition," she added.

Knight Frank executive director, residential services, Tay Kah Poh acknowledged that some developers face pressure to launch residential projects due to regulatory deadlines to complete development and finish selling all the units. That said, they would test the market before launching a project. "They could release some units and watch the market's reactions before adjusting the price, or the mix of units in the initial batch. Developers would also keep an eye on the competition in the area - to avoid getting stuck shortly after an initial sales spurt."

Including executive condominiums (ECs), a public-private housing hybrid, developers moved 1,218 units last month, higher than the 692 units in March this year and 810 units in April last year.

Increasingly, in the months ahead, the spotlight on the launch scene will fall on EC projects. First off will be Koh Brothers and Heeton's Westwood Residences in Jurong, where bookings are slated to begin on May 30. This will be the first EC project where buyers who have already bought a subsidised HDB flat will be subject to a resale levy. This will weigh down demand for units in new EC projects from upgraders, said Mr Mak. In all, he expects five or six EC projects to be launched this year, chalking up sales of 1,800-2,300 units.

Excluding ECs, he expects developers to sell 6,000-9,000 private homes in 2015.