Chart of the Day: New home sales crashed to 47.6% in September 2014

Levels are a far cry from 2012’s peaks.

Singapore’s new home sales may have increased from last month but the numbers are still languishing at the bottom relative to previous years’ statistics.

A report by OSK-DMG revealed that new home sales for Sep 2014 at 648 (excl. EC) were up 50% MoM but down 47.6% YoY vis-a-vis 437 units in Aug 14, 484 units in Jul 14 and 511 units in Jun 14. Year-to-date, 6,112 units (excl. EC) have been registered, down 52% YoY, and a far cry from the peaks levels attained in 2012 (only 27%).

OSK-DMG adds that the Sep take-up rate remained robust at 138% from 140% in the previous month. In terms of sales composition, the mass-market accounted for 55% of total sales, while the mid-market and high-end segments accounted for 39% and 6% respectively.

Here’s more from OSK-DMG:

Last month also marked the sale of 59 ECs, up 1.7% MoM but down 85.7% YoY, driven mostly by Waterwoods (Sing Holdings/UE E&C) at Punggol and Forestville (Hao Yuan) at Woodlands. With the launch of the 546-units Lakelife EC (Evia Real Estate; Jurong Lake District) and 561-units Bellewoods EC (Qingjian; Woodlands) in Oct/Nov14, we expect the EC market to start picking up in the coming months. 

Developers launched 514 units (excl. EC) in Sep (up 46.4% MoM but down 70.3% YoY) below the year-to-date average of 678. Despite prospective homebuyers holding back in anticipation of the surge in physical completions in 2015 and 2016 (See Figure 12), it appears that some developers are also holding back launches, with an eye on government stepping in to reverse some of its anti-speculation measures. For Sep, including ECs, mid-market accounted for 54% of the launches with a total of 276 units launched. Mass-market accounted for 31%, and the high-end segment 16%.