Developers flooded with unsold units as new home sales plunged 42.6% in Q3

New launches crashed 63.8%.

Local property developers are buried up to their necks with unsold inventory. New private residential home sales plunged 42.6% quarter-on-quarter in Q3, with only 1,531 units sold compared to 2,665 in Q2.

According to Savills, there were only 1,294 new private residential units launched, less than half of the 2,843 units launched last quarter.

Of this number, only 780 units were from new projects. This was a drop of 63.8% from the 2,152 units from new projects launched in Q2. 

“Evidently, developers were more focused on clearing the units in their existing projects than introducing new projects,” Savills noted.

Major projects launched in Q3 included City Gate, Highline Residences and Seventy Saint Patrick’s, which achieved take-up rates of 59.3% (89 out of 150 units), 88.8% (142 out of 160 units) and 78.6% (110 out of 140 units) respectively within their first month of launch.

“Given the lacklustre market, these projects performed well, bearing out current sentiments in the market that buyers are not only sensitive to competitive pricing but are also very selective,” the report stated.