OrangeTee Research: Analysis of Launch and Sales of Units by Developers in 2018 March
Monthly Sales rose month-on-month but lower than the volume seen last year
Slower sales attributed to lack of mega launches
Developers’ monthly sales (excluding EC) rose 86.5 per cent to 716 units in March this year. However, this is 59.8
per cent lower than the 1,780 units recorded in Mar’17. The lower sales could be largely attributed to an absence
of major launches, with The Tapestry being the only mega project launched this month.
New benchmark prices gaining market acceptance
The Tapestry moved 329 units at a median price of $1,408 psf this month. This is considered a new benchmark
price for a newly launched project in that area. Separately, Grandeur Park which was launched in Mar’17 at
$1,406 psf has achieved a new benchmark median price this month at $1,532 psf with 40 units being sold. Parc
Botannia that was launched in Nov’17 at $1,287 psf median price has also raised their selling price to a new high
at $1,310 psf and moved 30 units. The high-end project at Martin Modern achieved a new median price this
month at $2,772 psf with 20 new sales, much higher than the launched price of $2,152 psf.
The healthy take-up rate for these projects at new benchmark prices this month lend testimony that the higher
selling prices are gaining market acceptance. The demand could be driven by home-owners who are keen to snag
a unit now before prices trend higher in the coming months.
Demand is outstripping supply
We expect private homes prices to continue to rise as the current stock is depleting quickly. As it stands, the
cumulative units launched but unsold units have been decreasing over the past few months, indicating that
demand has already outstripped supply (see table below). There is also a time lapse of between 1.5 and 2 years
before projects could be launched from the sold enbloc sites, wherein supply of new launched units would build
up again from 2019. Therefore, the depleting stock and new demand from displaced enbloc sellers should
continue to lend support to the current price increases.
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