OrangeTee Research: Expect Higher Prices at Future Launches
Volumes up 15.4% m-o-m in October
- Positive sentiment and strong buyer demand push volumes higher even as some developers hold back on launches.
- The 10,340 units moved in the first 10 months of this year is 23.6% higher than the total number sold in the whole of 2016.
Sophia Hills top seller for October
- Sophia Hills, located in prime District 9, sold 62 units in October at a median price of $2,029 psf.
- The upscale Martin Modern came in second, with 47 units transacted at a median price of $2,343 psf.
Primary sales volumes to rise in November
- Sales volumes are expected to move slightly higher in November as the boost in volumes from the newly launched Parc Botannia offsets the winding down in sales activity towards the year-end.
Higher prices at future launches
Home buyers can expect to see higher prices at future launches as the demand for new launches remains robust amidst strong expectations of a market recovery and higher land prices. Initially, there were some concerns regarding buyer’s ability to absorb higher launch prices, as cooling measure and loan curbs have remained largely in place. However, the recent launch of Parc Botannia should help allay such concerns. According to media reports, the project sold 230 units over her launch weekend at an average selling price of $1,270 psf. This is substantially higher than the neighbouring High Park Residences which was launched in mid-2015 and sold at a median price of $988 psf. The most popular units were the 1-Bdrm, 2-Bdrm and 4-Bdrm units, with more than half of the 193 1-Bdrm units sold. This shows that the market remains quantum sensitive and developers will likely continue to lean towards a unit mix which favours affordability.
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