Singapore Private Residential
Market Update
Singapore Private Residential 15 May 2017
Singapore│ Private Residential
Primary Home Sales Frenzy Continues in Apr 2017 Private Residential Primary Sales Status (Excluding Executive Condominiums) Singapore private residential primary home sales in April doubled from a year ago but eased from last month (see Figure 1). Developers sold a total of 1,555 units of new homes in April, a decline of 13% m-o-m but an increase of 109% y-o-y. Despite the decline, April sales count indicates the second highest sale volume in a month, across the last 21 months.
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Figure 1: April 2017 Primary Sales (Excluding Executive Condominium)
Source: URA, REMS Research
The key contributor to the buoyant sales was the excellent performance of the two newly launched projects of the month, namely Seaside Residences at Siglap and Artra at Redhill. Seaside Residences (841 units) sold 419 units out of the 560 units launched at a median price of S$1,736 psf during its first launch month. This is equivalent to 50% of the total units in the whole development. The great sales count achieved by project was mainly due to the lack of new launches in the past 3 years in the locality of District 15. Seaside Residences is also the first new project built along the East Coast Parkway in the past 15 years. Artra (400 units), which is adjoining Redhill MRT, sold 126 units out of the 200 units launched at a median price of S$1,646 psf during its first launch month. This is equivalent to 32% of the total units in the whole development. The recent positive sentiment in the market and the good location of the project might be the main reasons for the strong sales in these two projects. Parc Riveria, which was first launched in November 2016, continued to appear in the top 10 best-selling list. It moved another 90 units in April at a median price of S$1,246 psf. The remaining projects in the top 10 list have been on the market for a while, see Figure 2 below.
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15 May 2017 Figure 2: Top 10 Best Selling Private Residential Project (Exclude EC)
Source: URA, REMS Research; Note: CCR- Core Central Region; RCR - Rest of Central Region; OCR - Outside Central Region
Launched-but-unsold inventory picked up The launched-but-unsold inventory increased 3% month-on-month to reach 5,248 units, after four consecutive months of decline. However, as compared to a year ago, it had decreased 12% year-on-year. This represents 14% of the total launched units, a 1-percentage point of increase (see Figure 3). The pick up might due to the launches of the projects in the recent months. Figure 3: Cumulative units sold vs unsold to-date (Ex-ECs)
Source: URA, REMS Research
Total unsold inventory dropped 12% m-o-m again The total unsold inventory declined again in April. Including those units that have not launched by the developers yet, the total number of unsold units held by the developers dropped 12% m-o-m and 36% y-o-y to 10,783 units. This represents 24.9% of the total number of units that developers have obtained permits to sell but have not received Certificate of Statutory Completion (CSC) yet. In addition, the total market unsold inventory does not include completed but unsold units (those received CSC) that are held by developers. These completed unsold stock could present good investment opportunities. Figure 4: Total number of units sold vs total number of units unsold (Ex-ECs)
Source: URA, REMS Research
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15 May 2017
The market frenzy continues Singapore private residential market enjoys a good start in 2017 with good responses from the new launches, from The Clement Canopy, Parc Rivera, to Grandeur Park Residences and Park Place Residences, to most recently Seaside Residence and Artra. Headlines of overcrowded show flats and ballots were reported in the newspapers. Some of the industry watchers have described Singapore property market as a market 'gone crazy'. This has drawn investors or home-buyers who are previously waiting on the side-lines to commit due to the positive sentiments generated. Developers are likely to remain cautious in pricing their projects. Those with existing unsold units are likely to take advantage of the positive vibe to continue to clear their unsold inventory. Developers have also been more aggressive in Government land tender as their land inventory dissipates. Overall, the private residential property market remains challenging though the cloud is clearing. Looking forward, we expect the sales to remain moderately strong, but not as good as that in March and April as there is a lack of new launches in the next few months. One of the outstanding launches is Martin Modern (450 units) by Guocoland, which is scheduled to launch in the second half of the year. We expect the overall property prices to continue its moderate decline over the next 5-8 months with a slow recovery thereafter. The lack of clear catalysts that can fundamentally change occupier demand for residential units is the main concern for us.
Terms of Use: Any reproduction or distribution of this report is prohibited unless authorised in writing by REMS Advisors Pte Ltd. This report is provided for general information only and should not be treated as advice for any specific user or property. Users of this report should consider this report as one of the many factors in making their investment decision an d should seek specific investment advice. REMS Advisors and the authors of this report shall not accept and hereby disclaim all responsibilities and liability for consequences arising out of any use of this report.
Terms of use can be found on the last page. All rights reserved.
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Singapore Private Residential 15 May 2017
Singapore│ Private Residential
Primary Home Sales Frenzy Continues in Apr 2017 Private Residential Primary Sales Status (Excluding Executive Condominiums) Singapore private residential primary home sales in April doubled from a year ago but eased from last month (see Figure 1). Developers sold a total of 1,555 units of new homes in April, a decline of 13% m-o-m but an increase of 109% y-o-y. Despite the decline, April sales count indicates the second highest sale volume in a month, across the last 21 months.
REMS RESEARCH Contact Us [email protected] Visit Us www.rems.asia
Figure 1: April 2017 Primary Sales (Excluding Executive Condominium)
Source: URA, REMS Research
The key contributor to the buoyant sales was the excellent performance of the two newly launched projects of the month, namely Seaside Residences at Siglap and Artra at Redhill. Seaside Residences (841 units) sold 419 units out of the 560 units launched at a median price of S$1,736 psf during its first launch month. This is equivalent to 50% of the total units in the whole development. The great sales count achieved by project was mainly due to the lack of new launches in the past 3 years in the locality of District 15. Seaside Residences is also the first new project built along the East Coast Parkway in the past 15 years. Artra (400 units), which is adjoining Redhill MRT, sold 126 units out of the 200 units launched at a median price of S$1,646 psf during its first launch month. This is equivalent to 32% of the total units in the whole development. The recent positive sentiment in the market and the good location of the project might be the main reasons for the strong sales in these two projects. Parc Riveria, which was first launched in November 2016, continued to appear in the top 10 best-selling list. It moved another 90 units in April at a median price of S$1,246 psf. The remaining projects in the top 10 list have been on the market for a while, see Figure 2 below.
Terms of use can be found on the last page. All rights reserved.
1
15 May 2017 Figure 2: Top 10 Best Selling Private Residential Project (Exclude EC)
Source: URA, REMS Research; Note: CCR- Core Central Region; RCR - Rest of Central Region; OCR - Outside Central Region
Launched-but-unsold inventory picked up The launched-but-unsold inventory increased 3% month-on-month to reach 5,248 units, after four consecutive months of decline. However, as compared to a year ago, it had decreased 12% year-on-year. This represents 14% of the total launched units, a 1-percentage point of increase (see Figure 3). The pick up might due to the launches of the projects in the recent months. Figure 3: Cumulative units sold vs unsold to-date (Ex-ECs)
Source: URA, REMS Research
Total unsold inventory dropped 12% m-o-m again The total unsold inventory declined again in April. Including those units that have not launched by the developers yet, the total number of unsold units held by the developers dropped 12% m-o-m and 36% y-o-y to 10,783 units. This represents 24.9% of the total number of units that developers have obtained permits to sell but have not received Certificate of Statutory Completion (CSC) yet. In addition, the total market unsold inventory does not include completed but unsold units (those received CSC) that are held by developers. These completed unsold stock could present good investment opportunities. Figure 4: Total number of units sold vs total number of units unsold (Ex-ECs)
Source: URA, REMS Research
Terms of use can be found on the last page. All rights reserved.
2
15 May 2017
The market frenzy continues Singapore private residential market enjoys a good start in 2017 with good responses from the new launches, from The Clement Canopy, Parc Rivera, to Grandeur Park Residences and Park Place Residences, to most recently Seaside Residence and Artra. Headlines of overcrowded show flats and ballots were reported in the newspapers. Some of the industry watchers have described Singapore property market as a market 'gone crazy'. This has drawn investors or home-buyers who are previously waiting on the side-lines to commit due to the positive sentiments generated. Developers are likely to remain cautious in pricing their projects. Those with existing unsold units are likely to take advantage of the positive vibe to continue to clear their unsold inventory. Developers have also been more aggressive in Government land tender as their land inventory dissipates. Overall, the private residential property market remains challenging though the cloud is clearing. Looking forward, we expect the sales to remain moderately strong, but not as good as that in March and April as there is a lack of new launches in the next few months. One of the outstanding launches is Martin Modern (450 units) by Guocoland, which is scheduled to launch in the second half of the year. We expect the overall property prices to continue its moderate decline over the next 5-8 months with a slow recovery thereafter. The lack of clear catalysts that can fundamentally change occupier demand for residential units is the main concern for us.
Terms of Use: Any reproduction or distribution of this report is prohibited unless authorised in writing by REMS Advisors Pte Ltd. This report is provided for general information only and should not be treated as advice for any specific user or property. Users of this report should consider this report as one of the many factors in making their investment decision an d should seek specific investment advice. REMS Advisors and the authors of this report shall not accept and hereby disclaim all responsibilities and liability for consequences arising out of any use of this report.
Terms of use can be found on the last page. All rights reserved.
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