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Thread: Two successful launches help revive new-home sales in March

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    Default Two successful launches help revive new-home sales in March

    New private home sales hit 8-month high

    Apr 16, 2016

    Better market sentiment, new launches help boost demand last month to 843 units

    Wong Siew Ying

    Demand for new private homes shot up to an eight-month high last month on the back of better market sentiment and a surge of new launches.

    There were 843 new homes sold last month, more than double the 303 units moved in February and the highest monthly sales since 1,655 homes changed hands last July, according to Urban Redevelopment Authority (URA) data released yesterday. The figures exclude executive condominiums (ECs).

    March was more buoyant partly because there were fewer launches in February due to the Chinese New Year holiday, a traditionally slow period for property sales.

    Developers launched 682 new private homes last month,well up on February's 209 units.

    "The large jump in buyer activity could be due to pent-up demand as the last new residential project launched was The Poiz Residences in November last year," said ERA Realty Network key executive officer Eugene Lim.

    CBRE Research said the expectation that the Government would not lift measures in the near future probably nudged those sitting on the fence to commit to a purchase.

    The Poiz Residences in Potong Pasir and two projects that were launched in March - Cairnhill Nine and The Wisteria - accounted for nearly 43 per cent of the new private homes sold last month.

    CapitaLand's Cairnhill Nine, near Orchard Road, was the top performer, selling 177 units out of the 200 units launched at a median price of $2,441 psf. This was followed by Northern Resi's The Wisteria in Yishun, which sold 125 of 216 units at a median price of $1,112 psf. The Poiz Residences sold 59 units with a median price of $1,475 psf.

    "Overall, developers' priced-to- sell strategy seems to have borne fruit. The rally in the stock market and an overall improved market sentiment in March have also lifted sales volume in existing launches," noted Cushman & Wakefield research director Christine Li.

    The spike in transactions last month lifted private new home sales to 1,470 units in the first quarter, up from 1,379 in the same period last year, but lower than the 1,692 units sold in the fourth quarter of 2015.

    Mass market homes or those in the suburban areas remained the most popular, with 461 new units sold last month, driven largely by The Wisteria. There were 210 units moved in the city centre, thanks to Cairnhill Nine, while 172 homes in the city fringes were sold.

    If ECs are included, sales came in at 1,328 units in March - also an eight-month high and triple February's total transactions of 433.

    The best-selling EC project was Sim Lian Group's Wandervale in Choa Chu Kang, the first EC development launched this year. It sold 292 of 534 units last month at a median price of $770 psf.

    Two new ECs will be available for booking this month: The Visionaire and Parc Life, both in Sembawang.

    Despite the rebound in launches and sales last month, some analysts remain cautious.

    SLP International Property Consultants executive director Nicholas Mak said monthly statistics are "always volatile" and he expects the number of launches to taper off in the coming quarters as the Government has trimmed the supply of land. "The number of private housing units expected to be sold by developers in Singapore this year is projected to be about 10 per cent lower than the 7,440 units sold last year", he noted.

    Mr Ong Teck Hui, national director for research and consultancy at JLL, said: "The market will remain challenging due to the downside risks arising from the economic slowdown, substantial unsold supply and a weak leasing market."

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    Default Two successful launches help revive new-home sales in March

    Two successful launches help revive new-home sales in March

    Developers sell 843 private homes last month compared to 303 in February; number of units launched also more than triples: URA

    By Lee Meixian

    [email protected]


    Apr 16, 2016

    THE successful launch of two condominium projects in March has lent a boost to new-home sale transactions in Singapore.

    This has also reinforced the market's belief there remains strong underlying demand for good-quality residential properties at the right price, despite the quiet months of January and February.

    According to data released by the Urban Redevelopment Authority (URA) on Friday, developers sold 843 private homes last month, close to triple the 303 units sold in February.

    About 682 units were launched in March, more than three times the 209 units launched in February.

    JLL national director Ong Teck Hui said: "Market confidence seems to have returned following the stock market volatility in the earlier part of the year and the Chinese New Year lull.

    "New sales take-up in Q1 2016 stands at 1,470 units, some 12 per cent higher than the 1,311 units which developers sold in Q1 2015. We now have to observe whether sales volume in the primary market has bottomed out and is on the path to recovery."

    CapitaLand's 268-unit Cairnhill Nine sold 177 of the 200 units launched, at a median price of S$2,441 per square foot (psf), thanks to the project's attractive location near Orchard Road and digestible price quantum.

    The Wisteria, which launched all of its 216 units, sold 125 at a median price of S$1,112 psf, given its appeal as part of a mixed development. It comes with a lifestyle mall.

    Other top-selling private residential projects in March were The Poiz Residences (59 units at a median price of S$1,475 psf), Kingsford Hillview Peak (43 units at a median price of S$1,289 psf) and Botanique at Bartley (31 units at a median price of S$1,302 psf).

    Inclusive of executive condominiums (ECs), a public-private housing hybrid, developers sold 1,328 units in March, more than thrice those sold in February. Some 1,216 units, including ECs, were launched, compared to just 209 in the preceding month.

    This was mostly due to the launch of Sim Lian's Wandervale EC, which sold 292 of its 534 units at a median price of S$770 psf.

    The other better-performing ECs in March included The Terrace (36 units at a median price of S$785 psf), The Brownstone (27 units at a median price of S$831 psf) and Sol Acres (26 units at a median price of S$791 psf).

    Consultants noted pent-up demand in the private-home market, which they say surfaces when buyers perceive good deals.

    In the past few years, in the absence of good options, many buyers had chosen to wait on the sidelines for prices to fall further, or for the property cooling measures to be removed, both of which did not happen.

    Now, with the government's reiterations that the measures will remain for a while, this could have prompted some buyers to finally be more decisive in acting on the purchases, he said.

    "The sales pick-up for these developments in March is poignant enough to reflect an improvement in sentiment and demand," Mr Ong noted. "If this trend continues, it would result in improvements in both launches and sales take-up in Q2, and that may pave the way for further moderation in price declines in 2016, compared to the last two years."

    PropNex Realty CEO Ismail Gafoor also expects strong sales volume in Q2 with the upcoming condominium launches of Gem Residences, Sturdee Residences and Stars of Kovan.

    Two new ECs, Parc Life and The Visionaire, are also slated for launch this month.

    Meanwhile, Mr Ismail believes developers will be adjusting their pricing strategy to continue moving units in their past launches.

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