Singapore Property Developer Sales Dip in Feb. Is This A Seasonal Decline Or A Cause For Concern? | OrangeTee Research
Developers’ monthly sales (excluding EC) declined 28.1 per cent m-o-m to 377 units in February due to slower home sales during the Chinese New Year holidays and the absence of major launches.
The number of units sold is not unusually low as primary sales have hovered around 300 to 400 units during the Chinese New Year period over the past three years.
There was an absence of major launches in February, with Parksuites (119 units) and Nim Collection (98 units) being the largest projects. Some developers have chosen to hold back their launches as they intend to raise prices later as the property market continues to improve in the months ahead.
Demand for homes in Core Central Region (CCR) continued to rise steadily in February, increasing 55 per cent y-o-y to 45 units.
Despite the increase in Buyer’s Stamp Duty, some top-notch properties are still trading at strong prices. The highest psf achieved in February is a unit at Wallich Residence ($3,894 psf), followed by Marina One Residence ($2,826 psf). However, these prices are still below the peak values in 2011. There is still room for price increase this year for CCR on the back of dwindling stock and limited supply, especially given a typical 1.5 to two-year time lag for redeveloped properties to be launched from the recent enbloc sales.
We expect the primary market to pick up from next month as more property launches are on the cards. The perception that the market is in the beginning of an upswing and the current enbloc frenzy could hasten buyers to secure a property now in anticipation of higher property prices. Long-term investors may also be entering the market to capitalise on the expected price upturn as pricier projects would be launched from the current pool of enbloc sites in Q3/2018 onwards.
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