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Developer sales remained tepid in June
Singapore Property Market News and Analysis


Latest Property Real Estate News - Published on 15/07/2015

Transaction volumes slowed further in June as property developers sold just 375 new private homes last month (excluding ECs), down from the 638 units (or 40 per cent) sold in May — latest data from the Urban Redevelopment Authority (URA) showed today. The lacklustre sales came as developers launched just 219 new units, the lowest in the year so far. The combination of selective buying sentiments, seasonal effects of the June school holidays and fewer new launches dampened the volume of transactions.

“There are three reasons for the subdued buying sentiments; firstly, it coincided with the June school holidays — where families may be away for holidays. Secondly, there was a lack of mass market launches with developers preferring to launch their new projects at a later date. Furthermore, with loan curbs still in place, homebuyers remained selective on their purchase decisions,” commented Mr Ismail Gafoor, CEO of PropNex Realty.

Source: URA, PropNex research

Mass market to lead primary home sales in 2015

Outside Central Region (OCR) accounted for the bulk of private home sales in June with 247 units sold (or 65 per cent) with the balance attributed to Rest of Central Region – which sold 79 units (RCR) (or 21 per cent) and Core Central Region which sold 49 units (CCR) (or 13 per cent).

Source: URA, PropNex research

Botanique at Bartley - the top performer in June

The 5 top-selling projects were – Botanique at Bartley, Lakeville, The Panorama, North Park Residences and City Gate.

Project Name

Region

Units sold

Median price ($psf)

Botanique at Bartley

OCR

59

$1,301

Lakeville

OCR

25

$1,320

The Panorama

OCR

25

$1,231

North Park Residences

OCR

24

$1,355

City Gate

RCR

23

$1,801

Source: URA, PropNex research

Price is the most crucial consideration

Ultimately, what matters in the current challenging environment is price — both on a psf and absolute basis. While selected projects which are reasonably priced and well located will continue to attract homebuyers, prices are expected to come under some pressure as the potential pool of buyers shrink and developers face stronger competition. This could be exacerbated by the sizeable residential supply that is expected to come on-stream.

With no changes to the government curbs on the horizon in 2015, the private residential market is expected to remain soft. We expect new private home sales volume for 2015 to about 8,000 units.

We expect sales numbers to pick up in 3Q 2015 as developers will look to launch their projects after the June holidays. However, we could see healthy monthly sales if more projects are priced realistically at levels that would draw in buyers.

Buying momentum should pick up slightly in the next 2 months due to the impending launch of High Park Residences in Sengkang. The EC segment will also see good sales due to the upcoming The Vales, Sol Acres and Brownstone projects.

For media enquiries, please contact:

Carolyn Goh
Senior Manager
Corporate Communications and Marketing
P & N Holdings Pte Ltd (holding company of PropNex Realty)
480 Lorong 6 Toa Payoh #10-01 HDB Hub East Wing Singapore 310480
DID : (65) 6829 6748 / 98287834 | Main : (65) 6820 8000 | Fax : (65) 6829 6600
www.PropNex.com

Algene Hong
Senior Executive
Corporate Communications
PropNex Realty
480 Lorong 6 Toa Payoh #10-01 HDB Hub East Wing Singapore 310480
DID : (65) 6829 6746 | Main : (65) 6820 8000
Fax : (65) 6829 6600
www.PropNex.com



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