October new private home sales fall, rebound seen this month on new launches

The Business Times - Nov 16
New private home sales slumped month-on-month in October owing to a dearth of new launches, but analysts expect sales to rebound in November, thanks to a slew of major launches.

Developers in Singapore sold 487 private homes - excluding executive condominiums (ECs) - last month, falling nearly 48 per cent from the 932 units moved in September, and 36 per cent lower than the 761 units they booked in October last year. The figures were released by the Urban Redevelopment Authority (URA) on Thursday.

Including ECs, developers moved 510 units last month, reflecting a decrease of 46 per cent from September's 944 units and also nearly 48 per cent lower than the 972 units sold in October last year.

Tricia Song, Head of Research:
New home sales for the first 10 months of 2018 have hit 7,446 units, on track to meet our full-year forecast of 8,500 – 9,000 units as more new projects are expected to be rolled out by developers before the end of the year. New launches Whistler Grand, Kent Ridge Hill Residences and Woodleigh Residences have reportedly sold 160, 116 and 30 units respectively in early November. 

We expect sales to continue to fluctuate from month to month in tandem with the number of projects being launched. As we have previously indicated, given the sizable supply pipeline from GLS and collective sale sites, developers are likely to be more cautious and may pace out their launches to ensure the market remains sustainable.

As the year winds down, developers will have a small window to put out new projects before market activity slows during the year-end festive period. Some new launches that could feature in the coming weeks include Parc Esta and Mayfair Modern. Click here for more analysis



Nearly half of Kent Ridge Hill Residences units sold at official launch

The Business Times - Nov 15
Almost half of the 250 units at Kent Ridge Hill Residences were sold at its official launch last weekend, said home-grown property developer Oxley Holdings.

A total of 116 units at the five-storey property along South Buona Vista Road were snapped up on Saturday and Sunday, Oxley said in a news release on Tuesday.

The average price of the units sold was S$1,700 per square foot. Eighty per cent of the units sold comprised one-bedders, one-bedroom and a study, and two-bedroom units.

Tricia Song, Head of Research:
Majority of the sales at Kent Ridge Hill Residences had focused on the smaller units at or below 60 sqm. Based on realis data downloaded as of 16 November, 75 of the 110 units sold and caveats lodged at Kent Ridge Hill Residences were 60 sqm or less, of which 46 units are between 44 to 48 sqm. This location is one of the nine areas that are subject to a more stringent minimum average size requirement of 100 sq m, effective from 17 January 2019. Investors and buyers may think that smaller format units in this accessible, city-fringe and serene area will be relatively more scarce in the future and thus increase more in value. 


MAS launches US$5b kitty to woo fund managers to drop anchor here

The Business Times - Nov 14
The Monetary Authority of Singapore (MAS) is making a US$5 billion move to anchor fund managers in Singapore, in preparation for a scale-up in private market activity.

This is the first time it is launching a fund for private market investments, to be managed by top global private equity and infrastructure fund managers. The managers must either be committed to deepening their existing presence in Singapore or establishing a significant one.

Under the programme, MAS will allocate US$5 billion of its own capital as part of its investment in the private markets asset class.
 
Tricia Song, Head of Research:

We expect this move to be positive for the office property market in the medium term, as it will attract more global or regional asset managers to commit to building up in Singapore so as to get access to the funds available for management. According to Colliers International Singapore Research, the financial services occupies 45% of CBD Premium and Grade A office space in Singapore. According to the latest Colliers Radar report “Top locations in Asia – Financial sector”, Singapore came in #3, scoring to on employment criteria, and is a major wealth management hub. It is also top in Asia on human factors, eg. personal tax, safety, quality of living, climate and air pollution, and the high-tech city indicator. Click here for Colliers' Top Locations in Asia Finance report.