SINGAPORE, 15 March 2022 – Mr Lam Chern Woon (蓝振文), Head of Research and Consulting at EDMUND TIE comments on developer sales in February 2022.
Developers moved 527 private residential units (excluding ECs) in February 2022, 22.5% lower than the 680 units sold in the previous month. Sales volumes were 18.3% lower compared to the same month a year ago. There was only one new project launched in February – Royal Hallmark in the RCR – with just 32 units launched. With 194 units launched in the month for the overall market, this translates to a lower but still buoyant take-up rate of 271% in February compared to 381% in January.
The bulk of the sales, or 50.5% of total sales, came from projects located in the RCR. The OCR accounted for 30.4% of sales while the CCR accounted for 19.2%. Nonetheless, the take-up rate was higher in the CCR at 374% compared to the RCR at 159%. 160 units were sold in the OCR despite a dearth of new units launched.
In the CCR, sales were contributed by projects such as Leedon Green (14 units), Fourth Avenue Residences (13 units) and Kopar at Newton (13 units) which collectively accounted for 40% of the market segment’s sale in the month. In the RCR, almost a-third of units sold was attributed to Normanton Park (85 units or 32%) while Avenue South Residences, Verdale and One Pearl Bank contributed 27% of the segment’s sales. Two projects, Dairy Farm Residences and The Florence Residences, with 32 units and 26 units sold respectively during the month, accounted for over a third of the OCR’s sales.
The bulk of the price increases for the overall market was driven by the RCR. The strong price momentum in the RCR likely inhibited the sales progress in this segment compared to the CCR or OCR. Median prices in February rose by about 1.9% on average from January in the RCR while price movements were more modest at about 0.1-0.2% in the other two segments.
For instance, Normanton Park sold units ranging from $1,684 psf to $1,978 psf in February, compared to a range of $1,493 psf to $1,955 psf in January, resulting in an increase of the median price from $1,841 psf to $1,855 psf. With just over 10% of units unsold, the developer is aiming to move units at progressively higher prices. Avenue South Residences also saw an increase in the median prices of units sold, from $2,312 psf in January to $2,371 psf in February. As at the end of February, Avenue South Residences is 89% sold.
Looking ahead, we expect sales to hold up in the coming months on the back of sustained housing demand, and exhibit a close correlation with new launch offerings. Overall price growth momentum is expected to be contained although projects with low unsold inventory are likely to seize the opportunity to adjust their pricing upward amid limited new project launches. Buyers may also be attracted to previous projects which have obtained TOP, allowing immediate occupation.
For further information, please contact:
Seah Li Ching (Ms)
DID: +65 6393 2369