Despite a dip in new project launches, more units put up for sale compared to Q3 2018.
New condominium sales grew 49.2% quarter-on-quarter (QoQ) or 16.9% year-on-year (YoY) to 3,198 units, compared to 2,736 units in Q3 2018, reported Singapore Business Review citing a Edmund Tie report.
This figure broke the record set last year, when purchases surged the night before the cooling measures were introduced on 6 July 2018.
All three regions saw growth in new sales, with the biggest growth being recorded in the Outside Central Region (OCR), caused by projects having attractive pricing.
The quarterly figure showed an increase despite a dip in the number of new project launches. Its lift was due to an increase in the number of units put up for sale, with the launch of major projects in Q3 2019.
Edmund Tie noted that this also resulted in a rise in the sell-down rates of these new launches, as buyers are given more options.
“The injection of ample supply last quarter, amounting to some 6,900 units islandwide, provided home seekers with abundant options and in tandem with competitive pricing, outstanding design and good locational attributes, catalysed a substantial volume of conversion,” said Ong Choon Fah, Edmund Tie CEO.
“Demand was project-specific and uneven across the market. The surge in demand was mainly attributed to projects such as Parc Clematis, Piermont Grand, Avenue South Residence, Treasure at Tampines, One Pearl Bank and The Florence Residences.”
On a regional basis, OCR had the biggest new condo sales increase as it rose 67% QoQ to 1,492 units compared to 893 units of the previous quarter.
Despite getting only two projects launched in Q3 2019, the number of units put up for sale was still 43.4% QoQ higher compared to Q2 2019. Additionally, the average sell-down rate also increased by 7.3 ppt on a QoQ.
The Rest of Central Region (RCR), meanwhile, gave the highest amount to the overall new condominium sale volume.
It grew 39.9% QoQ to 1,530 units from 1,094 units, resulting in a sell-down rate of 26.6% as there were increased options in this market segment and the location of being in the city fringe was favoured by purchasers.
In Q3, the number of units put up for sale in the region grew further by 75% QoQ. Its sell-down rates of new launches were set at 6.8% to 33.6%, with Avenue South Residence and One Pearl Bank getting sell-down rates exceeding 25%.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com