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New private home sales up 15%, driven by Duo and Alex Residences

SINGAPORE — New private-home sales rebounded 14.8 per cent last month from October as buyers snapped up units in two centrally located projects, but sales this month are expected to wane amid the year-end holiday lull.

SINGAPORE — New private-home sales rebounded 14.8 per cent last month from October as buyers snapped up units in two centrally located projects, but sales this month are expected to wane amid the year-end holiday lull.

Developers sold 1,228 units, excluding executive condominiums, last month, up from October’s 1,070 units, after they launched 15 per cent more homes at 1,293 units, data from Urban Redevelopment Authority showed yesterday.

Despite the Total Debt Servicing Ratio (TDSR) that has hit sentiment since the framework was introduced late in June, sales in November show that buyers continue to be drawn to competitively priced new condominiums, which offer quality facilities in good locations, said analysts.

Ms Christine Li, Head of Research and Consultancy at property firm OrangeTee, said: “November sales figures continue to support the current trend of buyers becoming more cost-conscious in their property purchases. However, when a good deal comes onto the market, units are snapped up quickly.

“This could imply there is demand in the market and investors are simply waiting for a good deal.”

The two standout projects last month were Duo Residences in Fraser Street and Alex Residences in Alexandra View, which together contributed 62.8 per cent to the month’s total sales.

A total of 600 units out of the 660 launched at the former were sold at a median S$1,999 per sq ft, while 171 units out of the 200 launched at the latter were sold at a median S$1,706 per sq ft.

“It was these attractive prices that set the tone for the sale of new launches in November and it gives the strongest signal to developers to price their new launches sensitively to attain high take-ups,” said Mr Mohamed Ismail, Chief Executive of PropNex Realty.

“The success of Sky Vue and Thomson Three in September, The Inflora in October as well as Duo Residencesand Alex Residences in November could further prompt developers to align their pricing strategy with current market sentiment,” he added.

The high take-up rate for Duo Residences resulted in the Central Core Region (CCR) dominating last month’s sales volume with 662 units.

The Rest of Central Region (RCR), where Alex Residences is located, saw 352 units in sales. Sales in the usually active Outside Central Region (OCR), however, amounted to a tepid 214 units.

Analysts said sales of new private homes will likely decline this month as developers hold back launches during the holiday season.

“With the year-end festivities and holiday season, new home sales are expected to ease from the monthly average of 1,149 units for October and November.

“Barring any unforeseen shocks, developers’ sales volume is expected to come in at below 1,000 units to close the year with a primary home sales volume of between 15,000 and 16,000 units,” said Colliers International Director of Research and Advisory Chia Siew Chuin.

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