June 18, 2018
Ms. Tricia Song, Head of Research for Singapore, Colliers International:
“As expected, developers’ sales in May rebounded strongly thanks to a couple of major new launches. Two new projects - Amber 45 and Twin Vew – accounted for 48% of the 1,121 units (excluding executive condos) sold last month. May’s sales were the highest since the 1,246 units sold in August 2017.
The 1,121 new homes transacted were 53.1% higher than the 732 shifted in April 2018, and 7.9% more than the 1,039 units sold in May 2017. The sharp rise in take-up came as developers placed 1,060 new units for sale – the highest number of units launched in a month since 1,616 in April 2017.
This brings year-to-May developers’ sales to 3,434 units (excl. ECs), 38% lower compared to 5,568 units sold over the corresponding period last year.
The top three best-selling private residential projects last month were: Twin Vew which sold 454 units at a median price of SGD1,385 psf; Amber 45 which moved 86 units at a median price of SGD2,378 psf; and 73 units transacted at Le Quest (Phase 2) at a median price of SGD1,462 psf.
For private residential projects, take-up rates have slowed down in general as developers stepped up prices and as earlier launched inventory gets snapped up. The sold-to-launch take-up rate in May 2018 was 1.06x, compared to 1.10x in April 2018 and 2.81x in May 2017.
Projects with catalysts and in less competitive locations still did well. For instance, Twin Vew sold 454 units at a median price of SGD1,385 psf, which is 11% above the median price of SGD1,246 psf sold at its adjacent Parc Riviera just a year ago. The good demand could be because buyers are still optimistic on its proximity to the Jurong Lake District, despite the derailed plans for the High Speed Rail.
Le Quest Phase 2 sold 73 units out of 115 units launched, a decent take-up despite a higher median price of SGD1,462 psf than the SGD1,309 psf achieved during its Phase 1 launch in August 2017, which sold 287 out of 300 units launched.
Meanwhile, sales tapered in the EC segment due to limited supply in the market. Rivercove Residences in Anchorvale Lane was the star performer again in May selling 108 units at a median price of SGD993 psf – a record high for ECs. Launched in April, Rivercove Residences has now sold 610 or 97% out of 628 units reflecting the pent-up demand for ECs, a hybrid between public and private housing.
The next EC would be the one at Sumang Walk. It was awarded at a record (for a EC site) SGD583 psf ppr in March 2018, and could be launched by mid-2019 earliest. We expect it to be launched at over SGD1,000 psf. In view of the sustained demand, the Government has set aside more EC sites on its Government Land Sale (GLS) programme, including one on the Confirmed List and two on the Reserve List for 1H 2018.
Despite the slow start to the year, we think the sales momentum is catching on with more new launches – 1,259-unit Stirling Residences, 805-unit Park Colonial, 327-unit Daintree Residence, 1,472-unit Riverfront Residences (former Rio Casa) and Jadescape (former Shunfu Ville) – all of which will be put on the market in the coming months. Colliers expects 12,600 new private homes to be sold in the whole of 2018, up from 10,566 units in 2017.
That said, developers’ sales are likely to be muted in June owing to the typically slower market activity during the June school holidays. Developers would usually postpone major launches till after the school holidays.”