Yahoo Finance Private home developers sales rise in July, but risks are not mitigated
Private home developers launched 911 units for sale and sold 1,178 units in July. The sales numbers by private home developers are 43% higher MoM and 32% lower YoY. Number of units launched-wise is 36% higher MoM and 59% lower YoY.
Developers sold 1,178 new private homes (excluding Executive Condos) last month – up by 43.5% from the 821 units transacted in June. On a year-on-year basis, developers’ sales were about 31.7% lower than the 1,724 units sold in July 2018, where panic buyers rushed to pick up new units before new cooling measures took effect on 6 July 2018.
July’s sales numbers brought overall new home sales (excl. ECs) to 5,366 for the first seven months of 2019 – down 5.4% from 5,671 units transacted over the corresponding period in 2018.
Huttons Asia commenting on the data released by the Urban Redevelopment Authority on Thursday (Aug 15), said July 2019 sale numbers is not directly comparable to July 2018 sales because cooling measures were introduced last year.
“July sales tend to be much higher than June because it is right after the school holidays and before the Lunar Seventh Month. But we believe that the solid sales recorded for One Pearl Bank and Sky Everton is a catalytic factor for the primary sales market in July and the positive sentiments spill over to the rest of the market.”
Private home developers sales in the RCR continued to lead the market, accounting for more than 50% of units sold in July, said Huttons. It added, “rising affluence among households allowed them to trade up to a city fringe private home.”
The leading real estate services company said, “August sales volume tend to be slower as developers hold back on launches in the Lunar Seventh Month and purchasers are likely to hold back as well. But right after the Lunar Seventh Month, we are likely to see several highly anticipated launches such as Parc Clematis, Avenue South Residences, Meyer Mansion, The Antares and Guoco Midtown.”
Huttons pointed out the top five private residential projects for July 2019:
Colliers International commenting on the July data compiled by URA from its survey of licensed private home developers, said, “demand for units at three former collective sale sites boosted developers’ sales significantly in July. Newly launched One Pearl Bank and two others – previously launched Treasure at Tampines and The Florence Residences – accounted for over a third of the total sales during the month.”
Ms Tricia Song, Head of Research for Singapore at Colliers International, said: “The best-selling private residential projects in July 2019 included: One Pearl Bank which moved 197 units at a median price of SGD2,353 per square foot (psf); Treasure at Tampines shifted 119 units at a median price of SGD1,325 psf; The Florence Residences sold 112 units at a median price of SGD1,449 psf; Parc Botannia transacted 75 units at a median price of SGD1,308 psf; while freehold development Sky Everton sold 67 units at a median price of SGD2,606 psf.”
Top 10 Selling Projects in July 2019 (including EC)
Project Name | Street Name | Locality | Units Sold in the Month | Median Price ($psf) in the Month | % sold to date (of total) |
Piermont Grand (EC) | Sumang Walk | OCR | 378 | 1,107 | 46% |
One Pearl Bank | Pearl Bank | RCR | 197 | 2,353 | 25% |
Treasure At Tampines | Tampines Lane | OCR | 119 | 1,325 | 26% |
The Florence Residences | Hougang Avenue 2 | OCR | 112 | 1,449 | 23% |
Parc Botannia | Fernvale Street | OCR | 75 | 1,308 | 84% |
Sky Everton | Everton Road | RCR | 67 | 2,606 | 61% |
Parc Esta | Sims Avenue | RCR | 55 | 1,664 | 48% |
Stirling Residences | Stirling Road | RCR | 45 | 1,859 | 61% |
Riverfront Residences | Hougang Avenue 7 | OCR | 43 | 1,327 | 74% |
View At Kismis | Lorong Kismis | RCR | 39 | 1,706 | 21% |
Source: Colliers International, URA
6 new launches in July 2019
Project Name | Street Name | Locality | Total Number of Units in Project | Units Launched in the Month | Units Sold in the Month | Median Price ($psf) in the Month | % sold (of launched) | |
Dunearn 386 | Dunearn Road | CCR | 35 | 35 | 3 | 2,524 | 9% | |
Haus On Handy | Handy Road | CCR | 188 | 30 | 25 | 2,874 | 83% | |
Jervois Treasures | Jervois Road | CCR | 36 | 36 | 1 | 2,426 | 3% | |
One Pearl Bank | Pearl Bank | RCR | 774 | 280 | 197 | 2,353 | 70% | |
Piermont Grand (EC) | Sumang Walk | OCR | 820 | 820 | 378 | 1,107 | 46% | |
View At Kismis | Lorong Kismis | RCR | 186 | 60 | 39 | 1,706 | 65% | |
Source: Colliers International, URA
Colliers noted that in general, large projects launched earlier saw buying interest pick up in July compared to June. Buyers continue to be value-conscious, with 430 or 37% of units (excl. ECs) sold in July priced at below $1,500 psf.
“July 2019 also saw the launch of a new EC development – a hybrid of private and public housing – Piermont Grand. This has come 15 months after the last EC — 628-unit Rivercove Residences was launched in April 2018 and sold 82% within the first month at a median price of $970 psf.
Despite the keen anticipation, Piermont Grand EC sold 378 units or 46% of its total 820 units, a tad slower than expected. This could be due to its record price point — its median price of $1,107 psf was an all-time high for newly launched ECs in Singapore.”
For the full year, Colliers Research is still expecting takeup of private home developers sale to come in at around 9,000 units (excl. ECs).
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