Singapore saw a big rise in the number of private residential homes sold during March, with the number of 843 sold by developers representing a substantial 180 percent increase from the 301 units sold in February.
This was the highest number of sales in a single month since July 2015. The increase in volume, according to real estate agency PropNex, was due to more units being launched by developers, the number of which rose from 209 units in February to 682 in March.
Analysing the figures, Ismail Gafoor, the Chief Executive Officer of PropNex Realty, said: “The surge in transaction levels during March is evidence that purchase motivations are largely project driven – with The Wisteria and Cairnhill Nine contributing more than 50 percent of the total sales volume last month.
“Even though there was a lack of major new launches in 1Q 2016, transaction volumes of new private homes improved quarter-on-quarter to 1,466 units in total; or a 12 percent improvement from the same time last year”.
Mass market homes still most popular
Properties in the Outside Central Region (OCR) was the most sought after in March, accounting for 55 percent of new private home sales, while Rest of Central (RCR) and Core Central Region (CCR) accounted for 20 percent and 25 percent respectively. The five top-selling projects were – Cairnhill Nine, The Wisteria, The Poiz Residences, Kingsford Hillview Peak and Botanique at Bartley.
Homebuyers will continue to scout for affordably priced homes
Amid challenging market conditions, upcoming new projects will likely be more competitively priced. Primary market performance will continue to depend on developers finding the right pricing strategy – which accurately portrays current sentiments. Buyers will remain very price and quantum sensitive and would only go in if they perceive the property to be a good value proposition.
With no changes to the government curbs on the horizon in 2016, the private residential market is expected to remain relatively soft. However, we can see a more active market as more projects are launched – new private home sales volume for 2016 is likely to exceed 8,000 units.
Ismail confirmed that he expects strong sales volume in 2Q, with the upcoming launches of GEM Residences, Sturdee Residences and Stars of Kovan; which will definitely spur buying demand. At the same time, developers will also be adjusting their pricing strategy to move units in their past launches – as evidenced in three of the five best-selling projects in March being from previously launched ones.