New private home sales jump 47% in March as developers roll out multiple projects

New private home sales jump 47% in March as developers roll out multiple projects

Singapore homebuyers at Treasure at Tampines (1)
Home buyers seen at the sales gallery of Treasure at Tampines - the mega condominium development which opened for preview on Mar 15, 2019. (Photo: Jeremy Long)

SINGAPORE: Sales of new private homes in Singapore surged 47.2 per cent year-on-year in March as developers rolled out multiple projects following the seasonally slow Chinese New Year festive period, leaving buyers "spoilt for choice".

Developers sold 1,054 units, excluding executive condominiums, in March compared with the 716 homes sold in the same month last year, data from the Urban Redevelopment Authority (URA) showed on Monday (Apr 15).

March’s sales were also more than twice the 455 units sold in February.

"With the passing of the festive month of February, developers were eager to resume launches which led to 10 new private residential projects and 1,812 units being launched for sale in March," noted real estate firm JLL.

This compares with the 614 units launched in March last year and the 596 launched in February.

With more projects being rolled out by developers, buyers remain spoilt for choice, said Mr Eugene Lim, key executive officer at ERA Realty Network.

THE LUX FACTOR

Sentiment proved to be positive for the ultra luxurious home segment last month.

Two of the 10 projects - 35 Gilstead and Boulevard 88 - launched last month were in the Core Central Region, where units went for a median price of S$2,549 and S$3,613 psf, respectively.

Additionally, 25 new private homes sold last month were above S$5 million, the highest number recorded for a single month since December 2013, noted Ms Christine Sun, head of research and consultancy at OrangeTree.

Of the 25 units, 20 were from Boulevard 88 and five were from Marina One Residences.

The most expensive unit sold in March was a 528 sq m unit at Boulevard 88, which was bought at S$28 million. At S$4,927 per sq ft, this was also the highest per square foot price for a new sales unit since June 2013, said Ms Sun.

READ: After a ‘tale of two halves’ in 2018, Singapore’s growth outlook dims amid trade, global demand woes

BUYERS REMAIN PRICE SENSITIVE

While there was keen interest among well-heeled buyers in the ultra-luxurious segment, as seen in Boulevard 88, the majority of buyers remain price sensitive, with 79 per cent buying homes priced at S$1.5 million and below last month, said Mr Lim.

In the other segments, four projects were launched each in the Rest of Central Region and Outside of Central Region.

The key highlights in the Outside of Central Region were mega projects Treasure at Tampines (2,203 units) and The Florence Residences (1,410 units), which made up two of the top five selling projects last month.

READ: As another mega condo launches, will there be enough demand in Singapore's property market?

Mr Ong Teck Hui, senior director of research and consultancy at JLL, however, cautioned that the surge in launches in March might be more than what the market can absorb.

"Developers were eager to resume launches after the festive month but the surge in launches is very much more than what the market can absorb. While it resulted in 1,054 units sold, the overall take-up rate of 58.2 per cent reflects the mismatch between supply and demand," he said.

He added that despite last July's cooling measures and a challenging market, projects that are more realistically priced and affordable are likely to sell better.

Source: CNA/ga(aj)

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