Artist’s impression of Fourth Avenue Residences, one of three new projects launched in January. The sales results for January signals a “very different” mood from last year when sentiments were more positive at the start of the year, said CBRE
Developers sold 433 private homes in January, down 28 percent from the 602 units moved in December, reported Channel NewsAsia citing Urban Redevelopment Authority data.
Last month’s sales were also 17.8 percent lower compared to the 527 units sold over the same period last year, excluding executive condominiums (ECs).
More: New Private Home Sales Expected To Slump By 20% In 2019: DBS
The sales results for January signals a “very different” mood from last year when sentiments were more positive at the start of the year, said Desmond Sim, CBRE’s head of research for Singapore and Southeast Asia.
Some analysts believe that sales last month may have been limited due to the lack of offerings in the Outside Central Region (OCR) and Rest of Central Region (RCR).
This comes as all three new projects launched in January – Fyve Derbyshire, Fourth Avenue Residences and RV Altitude – were all found in the Core Central Region.
“Sales volume is usually higher when large-scale projects are launched in the OCR and RCR since prices tend to be lower (compared to luxury homes) and more buyers can afford these homes,” said Christine Sun, OrangeTee’s head of research and consultancy.
“There is also a longer holiday period during the Lunar New Year where many potential buyers could have travelled overseas during the long weekend. As a result, many developers may have pushed back their launches to avoid breaking the sales momentum since sales are usually slower during the festive season,” she noted.
Fourth Avenue Residences found buyers for 74 units at a median price of $2,412 psf, while RV Altitude moved 19 units at a median price of $2,858 psf. Fyve Derbyshire, on the other hand, sold 11 units at a median price of $2,382 psf.
“The fact that three prime district projects were launched in January reflects confidence on the part of their developers in launching units in the upper price segment where the pool of buyers is more limited,” noted Ong Teck Hui, JLL’s senior director of research and consultancy.
Sun added that healthy demand for the new units “bodes well for the luxury market as more than 4,000 new homes could be launch-ready this year”.
Looking ahead, analysts expect this year’s demand for new homes to be driven by supply.
Upcoming launches include the 1,140-unit The Florence Residences in Hougang as well as the 2,203-unit Treasure @ Tampines.
“(It) will be a busy year for buyers, developers and agents alike,” said Eugene Lim, key executive officer at ERA Realty Network.
Can you afford a condo in Singapore? Check your affordability now. Get more details on the property market outlook for 2019
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
