Developers' new sales slump 17% to 5,402 units

But the average monthly sales recorded 1,801 units, significantly higher than that of 2011.

According to Knight Frank's Singapore Real Estate Highlights, developers sold a total of 5,402 units (excluding Executive Condominiums),including 5,313 uncompleted units and 89 completed units, in 2Q 2012.

Although sales fell by 17 per cent quarteron-quarter (q-o-q), the average monthly sales recorded 1,801 units on three-month average basis, significantly higher than the average monthly new sales of 1,364 units in 2011. On a six-month average basis, developers sold 1,988 units monthly in 1H 2012. This could set a new norm in the residential primary market where developers are expected to sell about 2,000 units monthly.

Outside Central Region (OCR) accounted for the bulk of developers’ sales or 70 per cent of the total new sales in 2Q 2012, lower than the 82 per cent proportion in 1Q 2012. Sales in mid-market (Rest of Central Region - RCR) and high-end (Core Central Region - CCR) segments increased in 2Q 2012 where developers sold 1,183 units and 403 units, respectively. In 1Q 2012, new sales in RCR and CCR recorded only 1,061 units and 129 units, respectively.

Mass market sales were mainly from Punggol and Pasir Ris areas through many new launches such as Flo   Residences, Palm Isles, Ripple Bay and The Palette. Sales in the mid and high-end markets were dominated by small sized units. For instance, Eon Shenton comprises a majority of 2-bedroom units smaller than 65 sqm while one-bedroom units account for more than half of Katong Regency unit mix.

Both projects experienced overwhelming market responses when launched in April 2012 with 77 per cent and 100 per cent units sold, respectively, as at June 2012.

Volume of new sales increased on the back of healthy buying sentiment in Singapore. With the expected prolonged low interest rate environment through 2013, stable local economic conditions and new jobs created albeit slower employment growth, the underlying housing demand remains strongand continues to absorb the housing supply.

Resale volume of private residential properties also increased in 2Q 2012, recording 3,487 units, 58 per cent higher than 2,206 units sold in secondary market in 1Q 2012. Demand for resale properties increased on the back of fast rising prices of new launches across the island. As new launches set new benchmarks for property prices, some home buyers turned to the resale market for perceived better value for money properties, immediate occupation needs, and more location options.