Bucking the trend: Number of private condos released in Q2 hits record high

It increased for the first time since TDSR’s implementation.

There were 2,843 private residential units released in Q2, which marks the first time that launches picked up since the implementation of the total debt servicing ratio (TDSR) framework in June 2013. This represents a 44.8% increase compared to the 1,964 units sold in Q1.

According to Savills’ Residential Sales Briefing for 2Q14, the turnaround is attributed to the 1,819 units launched in May, which made up 64.0% of the total number of units launched in Q2.

Coco Palms and Commonwealth Towers were the main contributors, accounting for more than half of the units launched in May.

“The healthy take-up in April could have encouraged developers to test the market with units which were competitively and attractively priced,” noted Savills.

Here’s more from the report:

The number of new private residential units sold in Q2 grew by 52.8% QoQ from 1,744 to 2,665 units. The second quarter witnessed stellar sales of a number of projects.

According to the URA’s data on private residential units sold by developers, there were 762 transactions inked in April, representing a growth of 58.8% month-on-month (MoM).

The two projects launched were Lakeville and The Sorrento, which achieved take-up rates of 90.9%
(209 out of 230 units) and 95.4% (125 out of 131 units) respectively.

In May, the number of units sold hit 1,488, a figure not seen since the implementation of the TDSR. Projects launched in that month included Coco Palms which sold a resounding 98.3% (590 out of 600 units) within its first month of launch.

Another project which enjoyed three-digit sales volumes (275 units or 68.8% sold) was Commonwealth Towers. However, June, which is traditionally known for slower sales because of the school holidays and exacerbated by the World Cup this year, saw sales volumes falling by 67.6% MoM to 482 units.

The Crest moved only 26.5% or 35 of the 132 units launched. Similarly, sales at Trilive were also slow with only 19 units sold out of the 80 launched. The performance of these projects was the result of a combination of factors, ranging from their location, ie, proximity to MRT stations and the lack of competition in the vicinity, to the more crucial factor of competitive pricing.