Though transaction volume in the private housing market dropped about 30 per cent last month, the number remained higher than the monthly average of about 700 units. Developers sold a total of 860 units - down from the 1,252 units sold in the previous month. The number of units launched was also slightly lower, at 1,363 - compared to 1,467 in the previous month (all excluding ECs).
“The two new launches of the month (Queen’s Peak and Parc Riviera) certainly drew buyers to show flats and propped up November’s volume. Judging from the good response to these two projects, buyers must have perceived that the launch prices were reasonable in the increasingly price sensitive market. November’s sales also indicated that underlying demand is still present if prices are attractive. Collectively, these two projects accounted for more than 46 per cent of the total number of units sold,” said Mr Ismail Gafoor, PropNex Realty CEO.
Mr Ismail notes that there are still several issues plaguing the private residential market namely; the mounting supply of homes amid the on-going implementation of stringent measures and strict loan curbs continued to weigh on buying sentiments. There is also an inertia to commitment as buyers remain on the sidelines whilst anticipating further price declines. As such, the primary market remains strongly launch driven, as witnessed by the Cairnhill Nine, GEM Residences, Forest Woods; and now – Queen’s Peak.
Developers will continue to act with caution – taking a slow and deliberate approach in launching their projects, as well as having a competitive pricing strategy to further entice buyers.
OCR/RCR region active
Both Outside Central Region (OCR) and Rest of Central Region (RCR) accounted for the bulk of private home sales in November with 822 units sold (or 96 per cent) with the balance in the Core Central Region (CCR) which sold 38 units (or 4 per cent).
Queen’s Peak and Parc Riviera - the chart-topping projects in November
The other top-selling projects in the month were:
Homebuyers expected to continue exercising heightened prudence
With the presence of price resistance, prices for upcoming new projects will remain competitive as there will be added pressure for developers to price their projects reasonably.
While selected projects which are reasonably priced and well located will continue to attract homebuyers, prices are expected to come under some pressure due to the large oncoming supply. As such, attractive pricing and location remain key drivers in helping developers move units
Sales performance in December and January will likely taper due to the seasonal school holidays and start of a new year; and lack of major projects slated for launch. For the whole of 2016, sales volume will almost certainly cross the 8,000 mark (excluding ECs) – this is the highest number in the last 3 years.