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Thread: New private home sales stay robust

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    Default New private home sales stay robust

    New private home sales stay robust

    May 16, 2017

    Despite drop in new units sold, sentiment has improved after tweaking of cooling measures

    Wong Siew Ying


    Demand for new private homes stayed robust in April with sales staying above 1,000 units for the second straight month - a feat not seen since the tail end of 2013.

    Developers sold 1,555 new units - excluding executive condos (ECs) - down by 12.6 per cent from the 1,780 shifted in March, said the Urban Redevelopment Authority (URA) yesterday. Despite the decline, sales were still more than double the 750 units moved in April last year.

    "There is a trend of greater market activities and rebound in consumers' confidence, which has led to a greater number of sales, even in projects that were launched earlier," said PropNex Realty chief executive Ismail Gafoor.

    Sentiment has picked up following the slight tweaking of some cooling measures in March. Private home values have declined by 11.6 per cent since the third quarter of 2013, as a slew of cooling measures dampened home demand.

    New units in suburban areas led April's sales with 967 transactions, followed by 558 in the city fringe and 30 in the core central region.

    Two new launches topped the charts: Frasers Centrepoint Singapore's Seaside Residences in Siglap sold 419 units at a median price of $1,736 psf while Tang Group's Artra in Redhill moved 126 units at a median price of $1,646 psf.

    Consultancy JLL noted that demand for units in previously launched projects was stable with 1,001 units sold in April against 1,079 in March. "This level of demand for previously launched projects is about double the average for 2016... This trend has bolstered the confidence of some developers in releasing more units," said Mr Ong Teck Hui, national director of research and consultancy at JLL.

    These popular projects included Parc Riviera in West Coast Vale, which sold 90 units, and Commonwealth Towers, where 85 homes were moved.

    There were 4,696 new private homes transacted in the first four months of the year - more than half of the 8,360 or so units sold in all of last year, the URA figures showed.

    In the EC segment, 371 new units were transacted in April. MCL Land's Sol Acres in Choa Chu Kang was the star performer, moving 122 units at a median price of $787 psf.

    No ECs were launched in April, while 1,616 private homes were released - the highest number of units launched since May 2014 and a strong sign of rising confidence among developers, said analysts.

    "Barring a financial crisis, market sentiment is expected to remain positive and the higher demand for new launches coupled with limited supply could lead to market stabilisation in 2017," said Mr Wong Xian Yang, head of research and consultancy at OrangeTee.

    As unsold inventory continues to dwindle further, Mr Wong added that "it is possible that new units will be launched at higher prices soon".


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    April new home sales more than double year-ago showing: URA

    1,555 private homes sold last month; but figure is 12% down from 1,780 in March

    May 16, 2017

    Lee Meixian


    THE turnaround in the residential market continues in the new home segment, with developers in Singapore selling 1,555 private homes last month.

    Although this was 12.6 per cent lower than the four-year high of 1,780 private homes sold in March, it was more than double the 750 units sold in April 2016.

    The above figures exclude executive condominiums (ECs). Including ECs, which are a public-private housing hybrid, developers found buyers for 1,926 units in April, an 18.3 per cent month-on-month drop.

    The above figures were released by the Urban Redevelopment Authority (URA) on Monday based on information collated from licensed housing developers.

    Among the best sold projects in April were Frasers Centrepoint's Seaside Residences at Siglap which sold 419 units in April; Artra at Redhill (jointly developed by a Far East consortium and New World Development) which sold 126 units; EL Development's Parc Riviera at West Coast Vale which sold 90 units; and Commonwealth Towers (developed by City Developments and Hong Leong) which sold 85 units.

    Of these, Seaside Residences and Artra were new launches in April. There was another new launch: The Brooks I & II, which sold 9 of the 28 units launched in the 61-unit project.

    With this, Seaside Residences is about half sold out, and Artra has found buyers for a third of its units.

    In his attempt to explain the drop in transactions in April, SLP International executive director Nicholas Mak said the robust sales volume in March was "unsustainable". It was also a knee-jerk reaction and a reflection of the market's euphoria over the slight relaxation of the cooling measures.

    OrangeTee's head of research and consultancy Wong Xian Yang said the drop in volume could be because the newly launched projects in April were priced higher than the new launches in March, namely Grandeur Park Residences and Park Place Residences.

    "According to URA Realis data, the median quantum for units sold in Seaside Residences and Artra were at S$1.37 million and S$1.4 million respectively, while the median quantum for Grandeur Park Residences and Park Place Residences were lower at S$870,000 and S$1.13 million respectively. This suggests that the market remains quantum-sensitive due to loan curbs and cooling measures."

    JLL national director of research and consultancy Ong Teck Hui noted that the sale of new private homes had dipped in April correspondingly with the drop in new units released from fresh launches.

    "The number of new units from fresh launches dropped from 937 in March to 714 in April, with corresponding take-up of 701 and 554 units, respectively.

    "Demand for units from previously launched developments was stable with 1,001 units sold in April against 1,079 in March. This level of demand for previously launched projects is about double the average for 2016 which shows many more buyers going back to such projects under current market conditions."

    He added that this pick-up in the market has made developers more confident about releasing more units. Some 902 units from previously launched developments were released for sale in April, 52.9 per cent higher than the 590 units in March, he said.

    In the first four months of the year, developers have sold about 4,700 private homes, more than double the approximately 2,200 units sold in the same period in 2016.

    "The new private home sales market remains on an even keel despite the decline in sales volume in April 2017," Mr Ong said.

    PropNex Realty chief executive officer Ismail Gafoor said: "There is a trend of greater market activity and rebound in consumers' confidence, which has led to a greater number of sales, even in projects that have already been launched earlier and nearing TOP (temporary occupation permit) dates. This is (evident) in the performances of Parc Riviera, Sol Acres EC and Commonwealth Towers, all three of which are in the top five best performing projects of the month."

    But CBRE head of research for Singapore and South-east Asia Desmond Sim warned that this momentum, both for launches and for sales, may slow down in the second half of the year when the number of new launches tapers.

    OrangeTee's Mr Wong also believed that with no new major launches expected in May, while developer sales could still surpass 1,000 units, the number could be lower.

    The next major launch is expected to be GuocoLand's Martin Modern in July in the River Valley district.
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