Chart of the Day: Overly fussy homebuyers drag demand for bigger and pricier units

They're getting harder to please.

Not only are homebuyers becoming more price sensitive nowadays, but they are also developing pickier taste and standard when it comes to choosing which unit to splurge their cash on. Developers are trying hard to meet the buyers' taste, but in an environment tattered with cooling measures and TDSR, sellers can only scratch their heads when buyers turn down even the most pleasing projects.

According to Maybank Kim Eng, the 1,790 units released for sale by developers in May 2014 was the highest since Sep 2013. The most prominent launches were Coco Palms (600 units released) and Commonwealth Towers (400 launched, 275 sold, median price SGD1,626 psf). 

Here's more from Maybank Kim Eng:

After lowering ASPs at The Panorama by ~10%, Wheelock sold another 100 units at a median price of SGD1,241 psf. Notwithstanding, the project remains 78% unsold.

New launches that failed to excite included The Rise @ Oxley (120 units launched, eight sold, median price SGD2,452 psf) and Singa Hills (58 units launched, two sold, median price SGD1,210 psf).

Judging from the best-selling projects, we conclude that homebuyers remain highly selective and price sensitive in an environment hampered by cooling measures and the Total Debt Servicing Ratio (TDSR).

For example, Coco Palms’ median price of SGD1,018 psf was a tad lower than the median resale price at NV Residences of SGD1,079 psf, even though the latter is just across the road.

Over at Commonwealth Towers, we estimate that ~75% of the units sold are one-bedders, each smaller than 485 sq ft and costing ~SGD800,000 on average. Two-bedders accounted for ~20% of the units sold, suggesting low demand for bigger (hence pricier) units.