Feb 18, 2014
Developers launched more residential units and recorded higher sales
last month compared with December 2013. However, the numbers remain relatively
low say experts, an indication that the market is still reeling from the impact
of the Total Debt Servicing Ratio (TDSR) framework.
Excluding executive condominiums (ECs), developers launched 549 units
in January. While this is higher than the 118 homes released in December 2013,
it is significantly down from the 1,814 units launched a year ago.
At the same time, 565 new private homes were sold in January compared
to the previous month’s 259 units, but this is a far cry from the 2,028 units
taken-up during the same period last year.
“Market activity stayed subdued in the lead up to the traditional Lunar
New Year lull, despite improving from December 2013, and only select projects
with unique selling points were popular with home buyers,” said Chia Siew
Chuin, Director of Research & Advisory at Colliers International.
On the back of two major launches this month - Riverbank @ Fernvale and
RiverTrees Residences - sales for February could be within 600 to 750 units,
noted Alan Cheong, Research Head at Savills Singapore.
“If the latter is comparably priced, sales numbers for February would
be closer to 750. As all the one- and two-bedroom units at Riverbank have been
sold, we may expect a repeat at RiverTrees. However, if RiverTrees is priced
below that of Riverbank, sales could even hit 1,000 units. Alternatively, if
RiverTrees is priced at a significant premium, sales could be as low as 550
units.”
For the whole of 2014, approximately 11,000 to 12,000 units could be
sold by developers, given the healthy land sales for residential property last
year, added Mohamed Ismail, CEO of PropNex Realty.
“Developer sales peaked in 2012 with over 22,000 transactions, but
slowed to about 15,000 in 2013. It could moderate further by 20 to 30 percent
in 2014, judging from the trend in the second half of 2013.”
Info courtesy - Propertyguru
