Overall in 2018, we do not see much improvement in the demand side and price increment of apartments. Even though stimulus has been released by the government, the demand was still soft. The average take-up rate was down slightly by almost 1.0% YOY, whilst the average price grew modestly by 1.1% HOH and 2.2% YOY.
Furthermore, when demand is sluggish, a developer’s priority lies in sustaining sales momentum, which is increasingly being challenged by the current tepid market. Therefore, an attractive product offering with strong value propositions, such as location, concept and clear target market, is critical to boost sales.
Facing the headwinds; developers will need to focus on producing items for first home buyers.