Developers took a breather in April following the blitz of new launches in March where 10 new projects were put on the market. New launches fell sharply by 75.5% from March to 444 units last month. This was the lowest number of units launched since 101 units were rolled out by developers in December 2018. 

In the absence of major launches, developers’ sales fell by 30.2% month-on-month (MOM) to 735 units (excluding Executive Condos) in April. Despite the MOM decline in sales, we think April’s figure is still relatively decent and is a positive sign for the market, given the far fewer units launched during the month. 

Developers have now sold 2,573 new private homes (excl. ECs) in the first four months of the 2019 – up by 11.2% from the 2,314 units sold over the corresponding period in 2018. 

Three new projects were launched in April: Mayfair Modern which sold 4 units at a median price of SGD2,017 psf; Wilshire Residences which moved 4 units at a median price of SGD2,670 psf; and Coastline Residences which shifted 10 units at a median price of SGD2,497 psf. Together, these new launches contributed to just 3.8% of the total developers’ sales last month. The bulk of the developers’ sales in April came from the earlier launches. 

3 new launches in April 2019

Project Name

Street Name

Locality

Total Number 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

Coastline Residences

Amber Road

RCR

144

144

10

2,497

7%

Mayfair Modern

Rifle Range Road

RCR

171

40

14

2,017

35%

Wilshire Residences

Farrer Road

CCR

85

20

4

2,670

20%

Source: Colliers International, URA


Several projects which have sold well in March continued to lead sales in April. These included The Tre Ver (81 units at median price of SGD1,624 psf), Parc Botannia (61 units at median price of SGD1,294 psf), Treasure at Tampines (51 units at median price of SGD1,326 psf), Stirling Residences (51 units at median price of SGD1,780 psf), and Riverfront Residences (50 units at median price of SGD1,308 psf).   

Top 10 Selling Projects in April 2019

Project Name

Street Name

Locality

Units Sold in the Month

Median Price ($psf) in the Month

% sold to date of total

The Tre Ver

Potong Pasir Avenue 1

RCR

81

1,624

71%

Parc Botannia

Fernvale Street

OCR

61

1,294

77%

Stirling Residences

Stirling Road

RCR

51

1,780

52%

Treasure at Tampines

Tampines Lane

OCR

51

1,326

15%

Riverfront Residences

Hougang Avenue 7

OCR

50

1,308

67%

The Florence Residences

Hougang Avenue 2

OCR

44

1,441

8%

Parc Esta

Sims Avenue

RCR

39

1,674

37%

Affinity At Serangoon

Serangoon North Avenue 1

OCR

35

1,493

48%

Whistler Grand

West Coast Vale

OCR

29

1,380

44%

Park Colonial

Woodleigh Lane

RCR

23

1,839

75%

Source: Colliers International, URA


We note that most buyers continued to be price sensitive and value-conscious, with the lowest priced projects in OCR – Parc Botannia, and the lowest-priced in RCR – The Tre Ver topping the charts. On the other hand, super luxury Boulevard 88 also continued to do well, selling 20 units at median price of SGD3,655 psf, after selling 26 units in March 2019.  

As some of the projects crossed 70% total takeup, we watch for developers raising prices. We note Park Colonial’s median price has risen about 5% to SGD1,839 psf in April, from SGD1,756 psf during its launch in July 2018. 

Outlook
At least three projects, all freehold, had launched in the first week of May. The largest launch in the East Coast in years – 592-unit Amber Park sold 117 units at a median price of SGD2,487 psf. In the north-eastern Kovan area, 250-unit The Gazania and 80-unit The Lilium, by the same developer, sold 22 and 2 units at median prices of SGD2,070 and SGD2,036 psf respectively.  

Colliers Research expects takeup to remain relatively healthy in the coming months as more projects could potentially be launched. These include prime projects: The Hyde (117 units), Haus on Handy (188 units), Jervois Prive (45 units), and Riviere (535 units); city fringe projects: Avenue South Residence (1,074 units), One Pearl Bank (774 units), Amber Sea (132 units), and suburban projects: Parc Komo (276 units), Piermont Grand Executive Condominium (820 units).   

For the whole of 2019, Colliers Research estimates that 9,000 new residential units (excluding ECs) 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. 

The announcement of an additional SGD9 billion in investment from the city’s two integrated resorts could boost gross domestic product growth and employment, spurring confidence in the property market and attracting foreign interest. 

We estimate that overall private home prices could stabilise in H2 2019, and rise by 1% for the full year 2019.  Supporting factors that could hold up prices in the coming quarters include: halt in interest rate increases, continued benign economic growth, and en bloc beneficiaries buying replacement homes.