New home sales crashed to 5-year low in December

A figure this low was last seen during the GFC.

New home sales crashed to a fresh low in December, as buying sentiment remained muted and developers held back launches.

Data from the URA showed that only 230 units were sold in December, down 46% from the 423 units sold in November. According to Colliers, this figure marks the lowest monthly sales level registered since the 108 units sold in January 2009 during the private residential market downturn.

Colliers stated that lacklustre sales can be blamed on the fact that no new projects were launched islandwide as developers opted to move units from previously launched developments to avoid a build-up in unsold units from projects already released.

In particular, no launch activity was recorded in the Core Central Region. Over in the Rest of Central Region and Outside Central Region, developers respectively released 27 and 26 units from previously launched developments.

“In the absence of new launches to spur buying interest, home-buying activity in December 2014 also slowed down across all three market segments,” stated Colliers.

Primary market sales volume in the CCR fell 56.3% MoM to 35 units. In particular, RV Residences moved 10 units while the other projects saw trickling sales.

Sales in the RCR and OCR fell 60.1% and 29.5% MoM to 61 units and 134 units, respectively. In the absence of major launches, interest was thinly spread across various projects. For example, projects which sold the most number of units in the respective regions include the 311-unit City Gate and 112-unit #1 Suites in the RCR which moved 9 and 6 units, respectively. Over in the OCR, the 696-unit Lakeville moved another 16 units while the 495-unit Rivertree Residences sold another 13 units.

Units sold in the CCR, RCR and OCR constituted 15.2%, 26.5% and 58.3%, respectively of islandwide new sales of private homes (excluding ECs) in December 2014.