Singapore Private Residential Sales in October
546 private residential units sold in October
A total of 546 units (private residential, exclude EC) were sold by developers in October, up from 341 units sold in the previous month. This represents a m-o-m increase of 60.1%, and a y-o-y decrease of 30.4%. A total of 6,383 units have been sold in the year of 2015 thus far, 5.1% lower than the corresponding period in 2014, which saw 6,725 units sold. Spike in this month’s sales is a result of the two new launches.
– Principal Garden and Thomson Impressions. Sales from these two projects made up 35.3% of October’s new sales.
Majority of sales from Rest of Central Region
With the majority (80.9%) of the units launched in October located in the Rest of Central Region (RCR), overall private residential sales volume came mostly from the RCR with 280 units sold. Total sales in the Core Central Region (CCR) and Outside Central Region (OCR) were 25 and 241 units respectively. Overall sales volume can be attributed to the OCR (44.1%), RCR (51.3%) and CCR (4.6%) respectively.
Principal Garden top performer in October 2015
The best-selling project (not including ECs) in October was the Principal Garden. Developed by UOL Group and Kheng Leong Company, the project saw a take up rate of 56.5% in the month of October. It had sold 113 out of the 200 units launched at a median price of $1,633 psf for the month. Thomson Impressions, second best seller of the month, developed by Nanshan Group, scored a take up rate of 53.3%. A total of 80 units were sold, out of the 150 units launched, in October at a median price of $1,399 psf.
Affordable quantum sits well with investors’ appetite
In the month of October, there were a total of 545 caveats lodged for new sales, excluding ECs, of which 50.1% of them were transacted below $1.2 million. The total debt service ratio (TDSR) framework has essentially restricted investors’ purchasing power. Therefore, smaller units priced below $1.2 million are deemed to be easier to sell due to their affordable quantum.
Response towards new launches implied that there is still demand in the market. Prudent investors are still seeking for value proposition despite dim market outlook and persistent headwinds such as increasing interest rates and looming supply in the pipeline.
The Poiz Residences, located along Upper Serangoon Road and Meyappa Chettiar Road, is expected to launch in November. The new launch is expected to uplift November’s sales tally and depending on the launch price, we may see overall sales volumes surprise on the upside.