Sales of private homes and ECs jump in 2017: URA estimates

SINGAPORE — Developers sold 14,707 private homes and executive condominiums (ECs) last year, about a quarter higher than 2016, preliminary estimates released on Monday (Jan 15) by the Urban Redevelopment Authority showed.

Excluding ECs, 10,682 private residential units were transacted in the whole of last year, about a third more than the 7,972 units sold in 2016.

A total of 431 new private homes were sold last month, compared to 367 in the same period in 2016. However, the Dec 2017 sales volume was the second lowest in the year, behind 382 units sold in January last year, and down 45.3 per cent compared to Nov 2017.

Property analysts said sales are traditionally slower in December due to seasonal factors such as the festive celebrations and school holidays.

PropNex Realty CEO Ismail Gafoor noted that the top selling project last month was Symphony Suites, along Yishun Avenue 9, which sold 50 units, and no other projects hit the 50-unit mark.

Mr Desmond Sim, head of CBRE Research for Singapore and South East Asia, said that even without major new launches, sales for private residential units in 2017 reached its highest level since the Government introduced the total debt servicing ratio in 2013. “For the past 12 months, monthly take-up has surpassed what has been launched, with the exception of April 2017,” he said. “This will help reduce the unsold inventory further – it is now at the lowest point since 2008.”

Both Mr Sim and Mr Ismail said they expect a similar sales volume this year.

However, Ms Christine Li, head of Singapore research at Cushman & Wakefield, said the number of private home transactions could be greater this year.

She noted that the 2017 tally could potentially have been higher, “if not for several developers holding back launches in anticipation of an expected upturn in prices (this year)”.

“As such, we could see high sales volumes in 2018, as the launch pipeline expands due to expected launches from the en bloc market, government land sales sites and re-launches from existing projects,” she said. “We expect around 13,000 to 14,000 units sold by developers in 2018.”