Ms. Tricia Song, Head of Research for Singapore, Colliers International: 

“New private home sales (excluding Executive Condos) in Singapore fell by 28.05% from January to 377 units last month. The weaker take-up was largely due to the lack of major launches as developers held back new projects during the Lunar New Year festivities amidst depleting inventory. Parksuites, a 119-unit project by Far East Organization in Holland Grove, soft launched 50 units and sold 3 units at a median price of SGD2,215 psf. Nim Collection, a 99-year leasehold landed development, launched 26 units and sold 3 units at median price of SGD1,661 psf, or a quantum of SGD2.8-3 million. 

The best-selling private residential projects in February were: Queens Peak which moved 47 units at a median price of SGD1,730 psf; Kingsford Waterbay which sold 34 units at a median price of SGD1,349 psf; and Artra which shifted 30 units at a median price of SGD1,726 psf.

Developers sold 92 new EC units in February, slightly down from 100 units in January. The top selling EC development last month was Parc Life in Sembawang which sold 24 units at a median price of SGD836 psf. This brings the total number of launched but unsold ECs to just 212 units, the lowest since May 2013’s 213 units. With the supply of ECs drying up and a rising private residential market,  we expect demand and price outlook for ECs, a hybrid between public and private housing, to be strong. The most recent land tender of a EC site at Sumang Walk in Punggol at a record price of SGD583 psf per plot ratio would also imply a breakeven price of SGD950 psf, higher than transacted prices for all new ECs, perhaps pointing to sharply higher EC prices two years down the road.  

As the saying goes, a rising tide lifts all boats. We observed that home prices of previously launched projects have also inched up amid the recovery in the property market and the Singapore economy. Some projects have raised prices noticeably such as Kingsford Waterbay whose median price increased from SGD1,111 psf in March 2015 to SGD1,349 psf in February 2018. Grandeur Park Residences near Tanah Merah MRT has also seen its median price increased from SGD1,406 psf at launch just a year ago in March 2017 to SGD1,487 psf in February 2018 as it is now 90% sold. Median prices at The Clement Canopy also rose from SGD1,343 psf in March 2017 to the latest SGD1,479 psf as it pushes towards 87% sell-through rate. 

Colliers projects that overall home prices could rise by 5% in 2018, in tandem with the rosier economic outlook. The price recovery could also be supported by a more benign supply outlook over the next three years.

We expect developer sales to pick up in April with several major launches in the pipeline. These included The Tapestry at Tampines, Twin Vew at West Coast, Margaret Ville at Margaret Drive, Amber 45 in East Coast, and Park Colonial at Woodleigh Lane.

For the full year 2018, we forecast developer sales could rise by 19% year-on-year to 12,600 units (excluding ECs) from the 10,566 units in 2017, due to more project launches from Government land sales and collective sales.”