New private homes saw stronger sales since Total Debt Servicing Ratio was introduced.
Developers saw new private home sales soar 81.8 percent to 1,780 units in March from 979 units in February.
On an annual basis, private home sales surged 111.2 percent from the 843 units sold over the same period last year.
JLL noted that the figure is also the highest since June 2013, when sales were still buoyant just before the imposition of the Total Debt Servicing Ratio (TDSR) at the end of June that year.
“This is the most significant month since June 2013 with primary market sales of private homes harking back to pre-TDSR levels. Not only are new launches doing well, but previously launched projects as well, since half of the March private home sales are attributable to such projects,” said JLL national director of research & consultancy Ong Teck Hui.
Grandeur Park Residences emerged as the top-selling project in March, with 480 units sold, followed by Park Place Residences at PLQ (217 units sold) and Parc Riviera (163 units).
For executive condominiums (ECs), developers sold 578 units, up 75.7 percent from the previous month and 19.2 percent over the same period last year.
iNz Residence emerged as the best-selling EC project with 187 units sold, followed by Sol Acres and The Visionaire.
“The demand pick-up has led numerous previously launched projects to confidently release more units for sale as seen in The Trilinq, Parc Riviera, The Springside/Brooks I & II, Marine Blue, Kingsford Waterbay, Highline Residences and Stars of Kovan which released between 50 and 105 units each in March,” revealed Ong.
“This is reflective of a broad-based improvement in demand with buyers not just attracted to newly launched projects but to those launched previously as well.”
Ong believe that the recent easing of the Total Debt Servicing Ratio and Seller’s Stamp Duty would have had a positive effect on new home sales during the month following its announcement on 10 March.
“In 2016, sales volume was improving gradually as price declines moderated. If the current upbeat trend of new home sales continues, it could mark a new phase in the market, characterized by stronger sales volume, prices bottoming and turning the corner,” he added.
PropNex CEO Mohamed Ismail expects the trend to continue in Q2 where buyers are prepared to purchase units that are rightly priced.
“With the strong pitch for the recent private units sold, the market is heading towards recovery and further price increase in the near future. Buyers today are taking advantage of the current pricing before any possible upwards of price increase with stronger demands.”