According to reports, it was mentioned that the third quarter of 2019 recorded the highest number of new homes sold since Q2 2013, with the number of non-landed homes sold in RCR and OCR increasing substantially. Additionally, Q3’s condominium sales surpassed the buying frenzy period right before the cooling measures were implemented.
Notwithstanding the softer economy in the first half of 2019, prevailing cooling measures and cautious market sentiment, the appeal of new project launches have attracted more local and foreign home buyers in Q3 2019. The appeal is also supported by the release of URA draft Master Plan 2019 in March and the unveiling of future development plans which are within proximity to various new launch projects.
In the search for investment destinations of appeal in this region, Singapore stands out for investors as a haven of stability and clarity, backed by clear government policies, pro-business environment and progressive urban planning strategies. These fundamentals give confidence to home buyers to choose Singapore as the location of choice for investment, business and residence.
Urban Redevelopment Authority (URA) indicated that private non-landed home prices rose by 1.3 per cent q-o-q for the third-quarter. As the market gradually adjusts to the new normal pricing set by new launch projects compared to previous year launches, there is growing acceptance from home buyers on the price premium factors accorded to well-located projects with attractive concepts. Other new projects are thoughtfully positioned in terms of value and design. As such, the general sales rates of condominiums have risen over the past three quarters this year, with higher-priced and sought-after units gradually absorbed.
New private non-landed sales in Q3 2019 grew significantly by 49.2 per cent to 3,198 units (see figure above), exceeding the 2,736 units in Q3 2018 when there was a buying frenzy on the evening before the implementation of property cooling measures on 6 July 2018. Total non-landed sales volume in Q3 2019 amounted to 5,053 units, slightly higher than the last peak in Q3 2018 of 4,988 units when the cooling measures were tightened.
Non-landed project launches
Although there was a decline in the number of new project launches, the total number of units from new projects and units released for sale almost doubled to nearly 4,600 units and 2,300 units respectively in Q3 2019. With total new sales volume over the past three quarters likely to exceed 7,000 units, new sales are expected to be within our forecast of 8,000 to 10,000 units for 2019.
Developers have been rolling out proactive marketing strategies to garner interest from prospective home buyers. At the same time, they have stepped up on partnership efforts, such as working closely with marketing agencies to tap on the right target customer pool.
Leveraging on technology tools to provide instant sales and promotional updates to customers have also helped developers and agents to reach out to more buyers effectively and enhance sales probability.
Projects within proximity to the Greater Southern Waterfront (GSW) story have gained attention and higher interest from investors since the government’s announcement of GSW and Sentosa development plans. In addition, projects that are also located near and in the Central Business District, coupled with design appeal and surrounding amenities, present positive selling points.
Other projects located in the city fringes and suburbs have received positive interest from the market. Projects with appealing concepts and located near to places of work, MRT stations, educational institutions and lifestyle amenities, offer strong value proposition for buyers who desire a home for their own stay.
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