Developer sales plunged 43.92% to 706 units in June

Buyers are holding back to compare projects before making a decision.

Developers launched 726 private residential units, including executive condominiums, in June 2018. Including ECs, developers sold 706 units within the month. Compared to last month, the number of launches sharply fell by 31.51% from 1,060 units (including ECs). This was mirrored by sales, which dropped 43.92% from 1,259 units (including ECs).

There were five new project launches in June – Affinity at Serangoon, Margaret Ville, The Gardens Residences, One Draycott, and 33 Residences.

The top five private residential projects for June 2018 are Margaret Ville (1,873 psf), Affinity at Serangoon ($1,584 psf), Twin Vew ($1,350 psf), The Gardens Residences ($1,662 psf), and 120 Grange ($3,159 psf).

Meanwhile, the top three EC projects for June 2018 are Rivercove Residences (29 units for $1,000 psf), Parc Life (11 units for $884 psf), and Northwave (9 units for $853 psf). Only 45 EC units remained unsold.

For the first half of 2018, an estimated 3,508 units were launched and 4,000 units sold. Compared to H1 2017, 3,960 units were launched and 6,039 units sold.

"The June period is one where sales volume will take a breather," Huttons Asia head of research Lee Sze Teck commented. "Furthermore there are some buyers who are holding back so that they can compare projects in the same district before making a decision. The World Cup is another distraction but it is unlikely to affect sales much. These are probably the reasons why sales volume in June is lower than May."

However, for OrangeTee & Tie head of research & consultancy Christine Sun, sales volume did not match the market confidence of some developers as many key projects were launched at new benchmark prices in June. In Serangoon planning area alone, 456 units were launched from The Garden Residences and Affinity at Serangoon, and only about 64 units or 41% of the 156 launched units at The Gardens Residences and 107 units or 36% of the 300 launched units at the Affinity at Serangoon were sold in June.

Sun said the sales for both projects could have been stronger if their launches were better spaced. "Both projects were essentially targeting the same pool of buyers and were cannibalising each other’s market share by launching the projects together," she added.

Lee anticipates the launches of Riverfront Residences, Park Colonial, Stirling Residences, and Daintree Residences. "With hindsight, Riverfront Residences, Park Colonial and Stirling Residences sold over 1,000 units in one night due to the Government cooling measures," he commented.

Double-digit sales continued to be registered at these three projects after 5 July, which according to Lee, is "a testament to the adequate liquidity and fundamentally healthy demand in the market."