Hopeful Outlook for Private Residential Primary Market Sales
Developer February sales doubled more than January as sales volumes spiked by 155.8% on a month-on-month basis. This spike in February sales volumes of 222.4% y-o-y was largely driven by sales in existing launches, which is at the highest level in 28 months.
Clementi launches topped the table in February—a total of 207 units were sold at the newly launched The Clement Canopy, fetching a median price of $1,343 psf. Parc Riviera maintained a strong selling record with 200 units sold at a median price of $1,281 psf.
March sales volumes are set to exceed February’s performance as the 720-unit Grandeur Park Residences and 429-unit Park Place Residences that are slated to launch in March will likely push sales figures north. Concurrently, Grandeur Park Residences has already sold 420 units on its opening weekend.
Primary market revives as bullish sentiments take hold of the jump in developer sales, which can be attributed to 2 projects in Clementi, namely The Clement Canopy and Parc Riveria. However, even after discounting sales from these 2 projects, total developers’ sales would still be 88% higher compared to February last year. Despite the poor economic outlook and the looming spectre of rising interest rates, market sentiments remain buoyant and yield-hungry buyers are snapping up units at new launches.
Barring a sudden deterioration in economic conditions or a change in housing policies, positive sentiments are expected to prevail over the next few months. The slight easing of the Seller Stamp Duty (SSD) would reinforce the optimistic mood in the market and uplift developers’ sales. Considering the launches of Grandeur Park Residences and Park Place Residences, we expect March’s sales figures to exceed 1,300 units.