Singapore Private Residential
Market Update
Singapore Private Residential 15 June 2017
Singapore│ Private Residential
Primary Home Sales Fell 34% M-O-M in May Private Residential Primary Sales Status (Excluding Executive Condominiums) Singapore private residential primary home sales fell in May. Developers sold a total of 1,024 units of new homes in May, a decline of 34% m-o-m and 3% y-o-y (see Figure 1). The decline was due to the lack of new launches in the market. Developers only released additional 339 units in May, which is 79% less than a month ago and 75% less than a year ago.
REMS RESEARCH Contact Us [email protected] Visit Us www.rems.asia
Figure 1: May 2017 Primary Sales (Excluding Executive Condominium)
Source: URA, REMS Research
The top 10 best-selling projects of the month are those who have launched for some time (see Figure 2). Parc Riveria, which was first launched in November 2016, continued to appear in the top 10 best selling list. In May, it ranked No. 1 as the best selling project of the month and moved another 83 units at a median price of S$1,246 psf. The Santorini at Tampines sold another 64 units in May at a median price of S$1,022 psf. Commonwealth Tower at Queenstown moved another 53 units at a median price of S$1,841 psf. 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 declined The launched-but-unsold inventory dropped 10% m-o-m and 25% y-o-y to reach 4,747 units, after a slight increase last month. This represents 13% of the total launched units, a 1 percentage point of decline from the last month (see Figure 3). The decline was due to the reduction of launched units in the month. This shows that the market is on the way to clear the stock. Terms of use can be found on the last page. All rights reserved.
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15 June 2017 Figure 3: Cumulative units sold vs unsold to-date (Ex-ECs)
Source: URA, REMS Research
Total unsold inventory dropped 3% m-o-m again The total unsold inventory declined again in May. This marked the third consecutive months of decline. Including those units that have not launched by the developers yet, the total number of unsold units held by the developers dropped 3% m-o-m and 33% y-o-y to 10,437 units. This represents 25% 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 stocks could present good investment opportunities. Figure 4: Total number of units sold vs total number of units unsold (Ex-ECs)
Source: URA, REMS Research
Positive Market Sentiments Continue The Singapore private residential market sentiments remained positive for the past few months. We often saw headlines of overcrowded showflats and successful launches early of the year. Recently, aggressive government land tenders and successful onbloc sales were often reported in the news, as developers are fighting to replenish their depleting land bank. On 18 May, the land plot at Stirling Road received a top bid of more than S$1 billion by Hong Kong's Logan Property and Chinese developer, Nanshan Group. This works out to a price of S$1,050 per square per plot ratio, which is 19% higher than the land price of Commonwealth Tower nearby. Just two days ago, Singapore Press Holdings (SPH) and Kajima Development had placed the top bid of S$1.132 billion for a 99-year-leasehold mixed commercial and residential site in Bidadari Estate. This translates into Terms of use can be found on the last page. All rights reserved.
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15 June 2017 S$1,181 per square foot per plot ratio, which is 52% higher than the land price of Poiz Residences nearby. All these have shown that developers are really hungry for land. This has generated positive market sentiments and drawn investors or home buyers who are previously waiting on the sidelines to commit. Developers with existing unsold units are likely to take advantage of the positive vibe and continue to clear their unsold inventory. Especially those projects near Queenstown MRT and Potong Pasir MRT, they are likely to benefit the most from the recent land sale news, because the land parcels recently sold have much higher land price than that of those projects. According to the marketing agents, some of the projects have decided to adjust their price upwards. Looking forward, we expect the sales to remain moderately strong in June, but will not be as good as that in March and April as there is a lack of new launches. However, we expect to see relatively strong sales in July, as Martin Modern (450 units) by Guocoland is scheduled to launch in early July. We expect Singapore's overall property prices to continue its moderate decline over the next 4-7 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 FundPlaces 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 and should seek specific investment advice. FundPlaces 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 June 2017
Singapore│ Private Residential
Primary Home Sales Fell 34% M-O-M in May Private Residential Primary Sales Status (Excluding Executive Condominiums) Singapore private residential primary home sales fell in May. Developers sold a total of 1,024 units of new homes in May, a decline of 34% m-o-m and 3% y-o-y (see Figure 1). The decline was due to the lack of new launches in the market. Developers only released additional 339 units in May, which is 79% less than a month ago and 75% less than a year ago.
REMS RESEARCH Contact Us [email protected] Visit Us www.rems.asia
Figure 1: May 2017 Primary Sales (Excluding Executive Condominium)
Source: URA, REMS Research
The top 10 best-selling projects of the month are those who have launched for some time (see Figure 2). Parc Riveria, which was first launched in November 2016, continued to appear in the top 10 best selling list. In May, it ranked No. 1 as the best selling project of the month and moved another 83 units at a median price of S$1,246 psf. The Santorini at Tampines sold another 64 units in May at a median price of S$1,022 psf. Commonwealth Tower at Queenstown moved another 53 units at a median price of S$1,841 psf. 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 declined The launched-but-unsold inventory dropped 10% m-o-m and 25% y-o-y to reach 4,747 units, after a slight increase last month. This represents 13% of the total launched units, a 1 percentage point of decline from the last month (see Figure 3). The decline was due to the reduction of launched units in the month. This shows that the market is on the way to clear the stock. Terms of use can be found on the last page. All rights reserved.
1
15 June 2017 Figure 3: Cumulative units sold vs unsold to-date (Ex-ECs)
Source: URA, REMS Research
Total unsold inventory dropped 3% m-o-m again The total unsold inventory declined again in May. This marked the third consecutive months of decline. Including those units that have not launched by the developers yet, the total number of unsold units held by the developers dropped 3% m-o-m and 33% y-o-y to 10,437 units. This represents 25% 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 stocks could present good investment opportunities. Figure 4: Total number of units sold vs total number of units unsold (Ex-ECs)
Source: URA, REMS Research
Positive Market Sentiments Continue The Singapore private residential market sentiments remained positive for the past few months. We often saw headlines of overcrowded showflats and successful launches early of the year. Recently, aggressive government land tenders and successful onbloc sales were often reported in the news, as developers are fighting to replenish their depleting land bank. On 18 May, the land plot at Stirling Road received a top bid of more than S$1 billion by Hong Kong's Logan Property and Chinese developer, Nanshan Group. This works out to a price of S$1,050 per square per plot ratio, which is 19% higher than the land price of Commonwealth Tower nearby. Just two days ago, Singapore Press Holdings (SPH) and Kajima Development had placed the top bid of S$1.132 billion for a 99-year-leasehold mixed commercial and residential site in Bidadari Estate. This translates into Terms of use can be found on the last page. All rights reserved.
2
15 June 2017 S$1,181 per square foot per plot ratio, which is 52% higher than the land price of Poiz Residences nearby. All these have shown that developers are really hungry for land. This has generated positive market sentiments and drawn investors or home buyers who are previously waiting on the sidelines to commit. Developers with existing unsold units are likely to take advantage of the positive vibe and continue to clear their unsold inventory. Especially those projects near Queenstown MRT and Potong Pasir MRT, they are likely to benefit the most from the recent land sale news, because the land parcels recently sold have much higher land price than that of those projects. According to the marketing agents, some of the projects have decided to adjust their price upwards. Looking forward, we expect the sales to remain moderately strong in June, but will not be as good as that in March and April as there is a lack of new launches. However, we expect to see relatively strong sales in July, as Martin Modern (450 units) by Guocoland is scheduled to launch in early July. We expect Singapore's overall property prices to continue its moderate decline over the next 4-7 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 FundPlaces 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 and should seek specific investment advice. FundPlaces 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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