Forgot your password?

Don't have an account? Create An Account

For agents interested in participating on SRX, please contact us at +65 6635 3388 or write to us at


Achieve the life you want, in the home you love
Property News16 Feb 2017

Developers in Singapore off to good start in housing sales

BT 20170216 KRURA63RG 2745355

DEVELOPERS got off to a good start in housing sales this year, based on the latest government numbers, and industry players are sanguine this will set the tone for the rest of the year as well.

Urban Redevelopment Authority data shows that developers moved 381 private homes (excluding executive condominiums or ECs) in January - up 3.8 per cent from December's 367 and 17.6 per cent higher than the 324 in January 2016.

The year-on-year (y-o-y) sales improvement contrasts with the report card for January 2016, with declines of 15.6 per cent month on month (m-o-m) and 13.8 per cent y-o-y.

Despite the lead-up to the Chinese New Year festivities last month, market sentiment and outlook at the beginning of 2017 are more positive than at the start of 2016, when sentiment took a dive amid stockmarket volatility, recalled JLL national director Ong Teck Hui.

The pick-up in sales last month was all the more noteworthy because there was just one fresh launch - 12 on Shan, a 78-unit project where 30 units were released but none sold.

BT 20170216 LKURA16 2745330 page 001

Property agents are expecting primary-market sales to rev up in the coming weeks. Developers have lined up several launches to ride on the current wave of sentiment improvement.

First off will be The Clement Canopy in Clementi, where sales bookings are slated to start on Feb 25. This is expected to be followed by Grandeur Park Residences next to Tanah Merah MRT Station. Park Place Residences at Paya Lebar Quarter, next to Paya Lebar Circle Line MRT Station, and Seaside Residences in Siglap are targeted for release in the March-April period.

In the EC segment - a public-private housing hybrid - sales booking at Qingjian's iNZ Residence in Choa Chu Kang is scheduled to begin in March.

Despite these fairly sizeable projects over the next two months, agents suggest that there would be sufficient depth of buying demand, given the diversity of locations and target buyers for the various developments.

Desmond Sim, CBRE Research head of Singapore and South-East Asia, said: "The market will offer more choices across a wider geographical spread over the next few months, which will support demand levels."

URA's data released on Wednesday shows that developers sold 184 ECs last month, down 13.6 per cent from the previous month but up 17.9 per cent y-o-y.

This month, predicts PropNex chief executive Ismail Gafoor, developers will find buyers for about 500 private homes (excluding ECs), followed by a further 800 units in March. Inclusive of ECs, primary-market sales will be around 700 units in February and more than 1,000 units in March.

Eugene Lim, ERA Realty Network key executive officer, predicts that developers would sell 600-800 private homes and 200-300 EC units this month.

JLL sees a more active first quarter for developers this year than the same period in 2016, building on the pick-up in sales momentum from last year. "If sustained, this will pave the way for higher sales in 2017, estimated at 8,000 to 8,800 private homes - above the 7,952 units that developers sold in 2016," said Mr Ong.

Lee Nai Jia, Edmund Tie & Company's head of South-East Asia research, forecasts that developer sales this year would be around 9,000 units.

Giving a more cautious prediction is CBRE's Mr Sim, who expects demand for new private homes to hover in the region of 7,000 units this year. "The market is closely watching interest rate movements, which might sway decision making."

Mr Lee of Edmund Tie & Co said that housing affordability would be clipped when the US Fed raises interest rates. "Geopolitical tensions and currency movements will also have an impact on housing demand."

On the whole, the uncertain external environment as well as a slower economy at home will put a lid on housing demand and prices - despite cautious optimism among buyers in the market.

Nicholas Mak, executive director at SLP International, reasoned that developers will be mindful of buyers' price sensitivity in terms of absolute-quantum price - given the total debt servicing ratio framework - when determining prices for their new launches. "Even though we are going to see a large number of new units being released in the next couple of months, it is unlikely to exert upward pressure on the URA's overall private home price index."

Mr Sim of CBRE noted that with the dearth of launches last month, buyers continued to invest in the large array of existing projects.

Developers' top-selling private housing project in January were Parc Riviera (38 units at a median price of S$1,270 per square foot), The Santorini (30 units at S$1,066 psf) and The Trilinq (25 units at S$1,339 psf), based on JLL's analysis of URA data.

In the EC segment, where there were no fresh project launches last month, The Terrace topped new EC sales with 41 units taken up at a median price of S$779 psf. At Sol Acres, 40 units were transacted at S$797 psf and at The Vales, 17 units at S$827 psf.
The Business Times

Like this article? Share it.
mySG Home
Your Digital Home
Track Your Home. Discover Your Wealth
The free, personalized advice, advocacy, and guidance for buying or renting property in Singapore
Property News 25 June
Selegie Centre, Peace Centre trying for en bloc sale again
Both are mixed developments; list of commercial buildings still seeking buyers is growing Singapore.

THE rejuvenation of Selegie Road will move further along if the owners of two buildings there succeed in their collective sale bids.

Property News 21 June
Holland Drive five-room HDB flat sold for S$1.1 million

A FIVE-room Housing Board flat at Holland Drive has been sold in June for S$1.1 million, setting a new record for the area.

The 38th-floor resale unit at Block 18C Holland Drive has a floor area of 1,259 sq ft, which works out to about S$874 per sq ft (psf).

Property News 19 June
Soilbuild bags Balestier property with $143.88m bid

Soilbuild Group Holdings has won the tender for the collective sale of Kemaman Point, a freehold 89-unit residential development in Balestier Road, with a bid of $143.88 million.

The marketing agent for the collective sale, Knight Frank, said each owner stands to receive between $1.4 million and $2.32 million.

Property News 19 June
New private home sales up 53% last month from April

Developers reaped their rewards last month with buoyant sales of new private homes, which raised hopes that transactions for the full year may still match last year's stellar level.

There were 1,121 units shifted last month, 53 per cent up on April and 8 per cent more than the same month last year.

Contact Us

Hello Singapore! I'm Sevi. Ask me any property question.
Chat with Sevi
Sevi - AI Bot
Replies in seconds
Need to speak to someone? 6635-3388
I'm Sevi, your personal assistant.

You can ask me basic property questions about transactions, listings, project info and X-value.

Some Examples:

1. Where is Gem Residences located?
2. Are there listings in Hillview Regency for 3 bedrooms and budget of $1.5m?
3. For how much can I sell my property?
4. What are the latest transactions in Bayshore Park?
5. Is it cheaper to buy HDB in Tampines or Jurong East?
6. What is the plot ratio for The Sail?
7. How many blocks are there in Ang Mo Kio Ave 3?

Type RESET or HELP whenever you need.