Apr 15, 2013

New private home sales for the month of March reached 2,793 units - an almost 300 percent increase month-on-month and 17 percent more than in March last year, according to data released by the Urban Redevelopment Authority (URA).

Including executive condominiums (ECs), 3,072 homes were sold last month - a 235 percent rise from February.
Mohd Ismail, CEO of PropNex Realty, said: “Despite the resale market not performing as well, the new sale market has remained robust. With the recent cooling measures, the rebound in March is indicative of robust demand from genuine first-time home buyers. Other than developers’ sensitive pricing, many of them could have been attracted by the discounts and rebates offered by developers. Developers probably took a respite to adjust their pricing and allowed more time for marketing efforts before launching their projects in March 2013.”

In fact, developers released 3,489 new units in March compared to just 262 previously. Most projects were launched in the Outside Central Region (2,350), followed by the Rest of Central Region (1,053) and the Core Central Region (86). No ECs were launched in March.
Seven projects sold more than 100 units last month. The three best-selling launches were D'Nest in Pasir Ris which sold 699 units of the 800 launched in the month at a median price of S$963 psf, Bartley Ridge which saw 367 units taken up at a median price of S$1,296 psf, and Urban Vista in Tanah Merah where 348 units were sold at a median price of S$1,503 psf.

Meanwhile, Ismail believes the strong sales figures may not be a true reflection of the impact of the cooling measures.

“March’s transaction numbers are a combination of new launches, attractive pricings and discounts/rebates which would lead to short-term robust buying behavior. Therefore, strong sales are not likely in the coming months. Buyers will still remain cautious but those projects that are ‘value for money’, well-located and attractively conceptualised should continue to sell well.”
Moving forward, Ismail expects the private property market to remain subdued as the full impact of the measures are yet to be seen. Sales volumes are likely to stabilise at around 1,400 to 1,600 units per month on average for the first half of 2013 as incentives and discounts are still being offered by developers.
Info courtesy -