New launches fueled acceleration in developers’ sales in March  
As expected, developers’ sales spiked in March 2019 amid 10 new launches, including two mega projects such as The Florence Residences and Treasure at Tampines. The two projects alone accounted for over a third of the total new private home sales last month. 

Data released by the Urban Redevelopment Authority on Monday (15 April) showed that developers sold 1,054 new units, excluding Executive Condos (ECs), last month – more than doubled the 455 units sold in February and up 47.2% year-on-year from the 716 units transacted in March 2018.

The increase in sales was again supply-led as developers placed 1,812 new units on the market. This was the highest number of units launched since 2,239 units were rolled out by developers in July 2018. 

Apart from The Florence Residences and Treasure at Tampines which are in the Outside Central Region (OCR), other new projects launched in March included: Boulevard 88 and 35 Gilstead in the Core Central Region (CCR), Nyon, One Meyer, Residence Twenty-Two, Rezi 24 and 1953 in the Rest of Central Region (RCR) and The Essence in the OCR. Together, these new launches contributed to 41.6% of the total developers’ sales last month.

10 new launches in March 2019

Project Name

Street Name

Locality

Total No. of Units in Project

Units Launched in the Month

Units Sold in the Month

Median Price ($psf) in the Month

Units sold as % of launched

1953

Tessensohn Road

RCR

58

58

18

1,866

31%

35 Gilstead

Gilstead Road

CCR

70

35

3

2,549

9%

Boulevard 88

Orchard Boulevard

CCR

154

35

26

3,613

74%

Nyon

Amber Road

RCR

92

92

4

2,434

4%

One Meyer

Meyer Place

RCR

66

66

10

2,669

15%

Residence Twenty-Two

Telok Kurau Road

OCR

22

22

1

1,632

5%

Rezi 24

Lorong 24 Geylang

RCR

110

110

4

1,482

4%

The Essence

Chong Kuo Road

OCR

84

84

6

1,309

7%

The Florence Residences

Hougang Avenue 2

OCR

1,410

200

77

1,434

39%

Treasure At Tampines

Tampines Lane

OCR

2,203

490

289

1,335

59%

4,269

1,192

438

37%

Source: Colliers International, URA


Star performers in March included: Treasure at Tampines which moved 289 units at a median price of SGD1,335 per square foot (psf); The Tre Ver which sold 131 units at a median price of SGD1,602 psf; The Florence Residences which shifted 77 units at a median price of SGD 1,434 psf; and Parc Botannia and Riverfront Residences which each sold 55 units at a median price of SGD1,303 psf and SGD1,334 psf, respectively.  

Top 10 Selling Projects in March 2019

Project Name

Street Name

Locality

Units Sold in the Month

Median Price ($psf) in the Month

% sold to date of total

Treasure At Tampines

Tampines Lane

OCR

289

1,335

13%

The Tre Ver

Potong Pasir Avenue 1

RCR

131

1,602

60%

The Florence Residences

Hougang Avenue 2

OCR

77

1,434

5%

Parc Botannia

Fernvale Street

OCR

55

1,303

73%

Riverfront Residences

Hougang Avenue 7

OCR

55

1,334

64%

Affinity At Serangoon

Serangoon North Avenue 1

OCR

50

1,506

46%

Stirling Residences

Stirling Road

RCR

45

1,772

47%

Parc Esta

Sims Avenue

RCR

36

1,711

35%

The Tapestry

Tampines Street 86

OCR

30

1,318

71%

The Garden Residences

Serangoon North View

OCR

29

1,545

20%

Source: Colliers International, URA


March 2019’s overall takeup rate (Number of units sold divided by the number of units launched during the month) of 58% was, however, the lowest since November 2014 (during which 423 was sold out of 863 units launched). 

Meanwhile, the takeup rate for new launches was 37% and performance across the 10 new launches was mixed.  
• The Florence Residence sold 77 or 39% out of the 200 units launched, and just 5% of the total 1,410 units available. The less-than-ideal launch takeup could be due to the competitive supply situation in the Hougang/ Upper Serangoon area, where a few major projects such as Affinity at Serangoon, Riverfront Residences, The Garden Residences with a total 3,137 available units had been launched since July 2018 and had soaked up pent-up demand. 
• Treasure at Tampines, the largest condo project in Singapore, sold 289 or 59% of the 490 units launched or 13% of the total 2,203 units available. 
• On the other hand, luxury project Boulevard 88 sold 26 or 74% out of 35 units launched, or 17% of the total 154 units available. This is a creditable performance, given the median price achieved of SGD3,613 psf or an average quantum of SGD8.9 million per unit, reflecting the resilient demand for luxury homes, despite the cooling measures. 
      
Despite the ample supply of new launches, buyers continued to dip into previously launched projects - in particular, The Tre Ver which sold 131 units in March, higher than the 48 units sold in February. The uptick could be due to potential buyers who were deflected from nearby Park Colonial which is now 72% sold and has started to raise selling prices. We note Park Colonial’s median price has risen to SGD1,828 psf in March 2019, from SGD1,756 psf during its launch in July 2018. 

Parc Botannia, Riverfront Residences and The Tapestry continued to sell progressively as they are the most affordable in the market at SGD1,303-1,334 psf. Affinity at Serangoon and The Garden Residences saw continued interest, riding on the Cross Island Line announcements in January 2019. 

Outlook
March’s sales brought total new private home sales for Q1 2019 to 1,946 units – up by 23% from 1,581 units sold in the corresponding period in 2018. 

Colliers Research expects takeup to remain relatively healthy in the coming months as more projects could potentially be launched. These include: Avenue South Residence (1,074 units), Amber Park (592 units), The Gazania (250 units) and The Lillium (80 units). 


For the whole of 2019, Colliers Research estimates that 9,000 new residential units could be sold, up slightly from the 8,795 units in 2018, on attractive launches line-up tempered by cautious buying sentiment post-cooling measures.