Singapore Private Residential
Market Update
Singapore Private Residential 19 July 2017
Singapore│ Private Residential
Singapore Primary Home Sales Fell 20% M-O-M Private Residential Primary Sales Status (Excluding Executive Condominiums) Singapore private residential primary home sales registered 3 consecutive months of decline in June. Developers sold a total of 820 units of new homes in June, a decline of 20% m-o-m (see Figure 1). This is the first time where the monthly sales fell below 1,000 units, after 3 consecutive months of sales surged above 1,000 units. The decline of primary home sales in the recent months was mainly due to the lack of new launches in the market. In June, developers only released additional 159 units, 53% less than the previous month.
REMS RESEARCH Contact Us [email protected] Visit Us www.rems.asia
However, as compared to a year ago, the primary sales number surged 53%. This is considered a moderate strong sale, as June is school holiday period where property sales normally remain low. Figure 1: June 2017 Primary Sales (Excluding Executive Condominium)
Source: URA, REMS Research
The top 10 best-selling projects of the month continue to be those who have launched for some time (see Figure 2). The Santorini in Tampines ranked No. 1 with 75 units sold in June at a median price of S$1,026 per square foot. It has been in the Top 10 best-selling projects list for the consecutive 7 months. Parc Rivera at West Coast, ranked 2nd, has sold another 55 units at a median price of S$1,218 per square foot. Parc Rivera has been in the Top 10 best-selling projects list for the consecutive 8 months. Commonwealth Tower at Queenstown continues its sales momentum moved another 47 units at a median price of S$1,899 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
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19 July 2017
Launched-but-unsold inventory declined The launched-but-unsold inventory fell 11% m-o-m and 30% y-o-y to reach 4,208 units, marks the 2nd consecutive months of decline. This represents 12% 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. It is evident that the market is on the way to clear the stock. Figure 3: Cumulative units sold vs unsold to-date (Ex-ECs)
Source: URA, REMS Research
Total unsold inventory fell 1% m-o-m The total unsold inventory declined again in June. This marked the fourth 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 fell 1% m-o-m and 31% y-o-y to 10,303 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. This is another evidence that the market is on the way to clear the stock. Figure 4: Total number of units sold vs total number of units unsold (Ex-ECs)
Source: URA, REMS Research
July sales expected to remain strong The Singapore private residential market sentiments continue to improve with developers bidding aggressively in government land tenders and collective sale of private land. Developers are taking advantage of the positive vibe to run promotion campaigns to help to clear their unsold inventory. For example, Commonwealth Tower has One Price Campaign where the price of the same type of units is fixed, regardless of levels. However, there are projects which had increased their selling prices. Grandeur Park Residence had increased their selling
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19 July 2017 prices twice recently. The current selling price is 5% above the original selling price, according to the agents. Looking forward, we expect the sales to rebound in July and August with the launch of Martin Modern (450 units) by Guocoland and Le Quest (516 units) by Qingjian respectively. Martin Modern at River Valley is currently having its preview. It is scheduled to be officially launched on 22 July. Potential buyers who submitted their cheques before this date will enjoy 5% early bird discount. The indicative price of Martin Modern (exclude 5% discount) is as follows: 2BR (764 sqft): S$1.8 - 1.96 mil 2BR + Study (850-883 sqft): S$1.93-2.08 mil 3BR (1,012-1,087 sqft): S$2.12-2.46 mil 3BR Premium (1,399 - 1,421 sqft): S$2.88 - 3.18 mil 4BR Premium (1,733- 1,798 sqft): S$3.86-4.26 mil Le Quest at Bukit Batok will open its show flat on 22 July and its official launch is scheduled on 5 Aug. The indicative price is as follows: Studio: from S$588K 1BR: from S$648K 2BR: from S$758K 3BR: from S$990K 3BR Premium: from S$1.18m 4BR: from S$1.38m We expect Singapore's overall property prices to continue its moderate decline over the next 3-6 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 19 July 2017
Singapore│ Private Residential
Singapore Primary Home Sales Fell 20% M-O-M Private Residential Primary Sales Status (Excluding Executive Condominiums) Singapore private residential primary home sales registered 3 consecutive months of decline in June. Developers sold a total of 820 units of new homes in June, a decline of 20% m-o-m (see Figure 1). This is the first time where the monthly sales fell below 1,000 units, after 3 consecutive months of sales surged above 1,000 units. The decline of primary home sales in the recent months was mainly due to the lack of new launches in the market. In June, developers only released additional 159 units, 53% less than the previous month.
REMS RESEARCH Contact Us [email protected] Visit Us www.rems.asia
However, as compared to a year ago, the primary sales number surged 53%. This is considered a moderate strong sale, as June is school holiday period where property sales normally remain low. Figure 1: June 2017 Primary Sales (Excluding Executive Condominium)
Source: URA, REMS Research
The top 10 best-selling projects of the month continue to be those who have launched for some time (see Figure 2). The Santorini in Tampines ranked No. 1 with 75 units sold in June at a median price of S$1,026 per square foot. It has been in the Top 10 best-selling projects list for the consecutive 7 months. Parc Rivera at West Coast, ranked 2nd, has sold another 55 units at a median price of S$1,218 per square foot. Parc Rivera has been in the Top 10 best-selling projects list for the consecutive 8 months. Commonwealth Tower at Queenstown continues its sales momentum moved another 47 units at a median price of S$1,899 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
Terms of use can be found on the last page. All rights reserved.
1
19 July 2017
Launched-but-unsold inventory declined The launched-but-unsold inventory fell 11% m-o-m and 30% y-o-y to reach 4,208 units, marks the 2nd consecutive months of decline. This represents 12% 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. It is evident that the market is on the way to clear the stock. Figure 3: Cumulative units sold vs unsold to-date (Ex-ECs)
Source: URA, REMS Research
Total unsold inventory fell 1% m-o-m The total unsold inventory declined again in June. This marked the fourth 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 fell 1% m-o-m and 31% y-o-y to 10,303 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. This is another evidence that the market is on the way to clear the stock. Figure 4: Total number of units sold vs total number of units unsold (Ex-ECs)
Source: URA, REMS Research
July sales expected to remain strong The Singapore private residential market sentiments continue to improve with developers bidding aggressively in government land tenders and collective sale of private land. Developers are taking advantage of the positive vibe to run promotion campaigns to help to clear their unsold inventory. For example, Commonwealth Tower has One Price Campaign where the price of the same type of units is fixed, regardless of levels. However, there are projects which had increased their selling prices. Grandeur Park Residence had increased their selling
Terms of use can be found on the last page. All rights reserved.
2
19 July 2017 prices twice recently. The current selling price is 5% above the original selling price, according to the agents. Looking forward, we expect the sales to rebound in July and August with the launch of Martin Modern (450 units) by Guocoland and Le Quest (516 units) by Qingjian respectively. Martin Modern at River Valley is currently having its preview. It is scheduled to be officially launched on 22 July. Potential buyers who submitted their cheques before this date will enjoy 5% early bird discount. The indicative price of Martin Modern (exclude 5% discount) is as follows: 2BR (764 sqft): S$1.8 - 1.96 mil 2BR + Study (850-883 sqft): S$1.93-2.08 mil 3BR (1,012-1,087 sqft): S$2.12-2.46 mil 3BR Premium (1,399 - 1,421 sqft): S$2.88 - 3.18 mil 4BR Premium (1,733- 1,798 sqft): S$3.86-4.26 mil Le Quest at Bukit Batok will open its show flat on 22 July and its official launch is scheduled on 5 Aug. The indicative price is as follows: Studio: from S$588K 1BR: from S$648K 2BR: from S$758K 3BR: from S$990K 3BR Premium: from S$1.18m 4BR: from S$1.38m We expect Singapore's overall property prices to continue its moderate decline over the next 3-6 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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