Total home sales for 2017 number at 10,682 for private homes from developers according to industry experts, analysts and URA. This rise indicates a steep increase from the 7,972 number of units sold in 2016, marking a 34% increase, and the highest since 2013.
EL Development’s Symphony Suites in Yishun which was launched in Feb 2015 and Parc Riviera which was launched in Nov 2016 came in top in new home sales in the month of December. While 50 units were sold at a median price of $1,027 psf, Parc Riviera was so popular that it sold 44 units at a median price of $1,223 psf. Coming in third in the new home sales category is Parc Botannia of Wee Hr Holdings, which sold 32 units at a median price of $1,283 psf.
“Developers might be witholding property launches in lieu of projecting further increase in prices in 2018,” says Christine Li, Cushman & Wakefield’s head of research for Singapore. However, according to Li, expected launches in 1H2018 include Low Keng Huat’s 99-year leasehold, mixed-use development along Perumal Road at Farrer Park; MCL Land’s 99-year leasehold, 275-unit residential development along Margaret Drive; and City Developments’ 124-unit New Futura, a freehold condominium at Leonie Hill Road, where private preview by invitation only will be held on Jan 18.
In December, traditionally understood as one of the slower months in property sales, only 231 units were taken up compared to the 450 units in November. Faster clearance of Developer’s holding inventory was due to the higher take-up rates in December this year, almost twice the number of units launched for sale.
We at SG Home Partner are slightly negative of the outlook of the property market in 2018. We expect the month of Jan to project increased sales in anticipation of the auspicious lunar new year. With increase in interest rates in property loans, volatility in property transactions may dip to a decline.