Developers sold 1,009 (excluding ECs) new residences in October, at 89% of total new private properties launched in the month. In comparison M-O-M, 68% of the total new launches were sold in September. Further analysis showed that total number of units sold took a turn in October down 19% from 1,246 units sold in September, according to data published by the Urban Redevelopment Authority.
“The number of new homes sold monthly is dependent on the number of new launches within that month. Due to fewer launches totally 1,124 in October, in comparison with 1,806 units in September, we see a drop in the number of new residential homes sold. However, it was noted that attractive prices set the tone for the sale of new launches in October. We believe both developers and home buyers have come to terms with the government curb on property loans, which was introduced to rein in rising home prices. While more affordable mass-market homes outside the central region (OCR) continue to attract buyers, overall affordability has been affected by the government’s cooling measures, and consequently, some developers have responded by fine-tuning selling prices. One example is The Inflora, which 99% was sold after 1 week of its launch, and I believe the sweetener is the right pricing (at median price of less than $1,000psf) with the right quantum which led to the overwhelming demand,” commented Mr Ismail Gafoor, CEO of PropNex Realty.
The Inflora, the best seller in October
All best-selling projects were from the OCR and RCR namely The Inflora sold 388 units at a median price of $952psf, Nine Residences moved 96 units at $1,107psf. The Venue Residences found buyers for 39 units at $1,457psf; Grandview Suites sold 37 units
at $1,301psf, whereas Skyvue sold 36 units each at median prices of $1,434psf. In all, new homes in the RCR and OCR contributed over 90% of sales in the month due to their larger project with more units available for sale and their more budget-friendly launch prices compared to other regions.
Demand still strong in weakening market
“The sustained buying level from the previous month shows that underlying demand for the private housing market is still abundant. After the introduction of the TDSR (and the increased ABSD), buyers have become more selective in their purchases. Developers who have taken this into consideration and adjusted their pricing strategies accordingly. September and October’s sales show that the market will respond positively to projects of which developers adopt the right pricing strategy to better meet the expectations of targeted buyers. The success of Sky Vue and Thomson Three in September, and The Inflora could further prompt developers to align their pricing strategy with current market sentiments.”
“Nevertheless, we expect sales volume to remain strong and maintain at the current level of about 1,000 units per month for the remainder of the year, but excessive growth is unlikely due to the government measures and fragile global economic recovery. Home buyers and investors will continue to remain selective with projects—but we do expect the sales activity to remain healthy depending on prices that developers put out. Any upcoming projects that are rightly priced and at the right quantum will command a good demand,” concluded Mr Ismail.
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P & N Holdings Pte Ltd (holding company of PropNex Realty)
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