JLL’s perspective: Private residential units sold by developers in February 2014 Cautious market witness favourable demand for selective projects SINGAPORE, 17 March 2014 - Developer sales remain fairly muted in the month of February with a total of 671 units launched and 724 units sold. Only two new residential projects in Sengkang West entered the market this month namely Rivertrees Residences as well as Riverbank @ Fernvale, releasing a total of 300 and 250 units respectively. The tight supply situation is a result of developers adopting a cautious stance on new projects as Lunar New Year festivities continued during the early part of this month. Despite a noticeably smaller number of project launches, overall sales level has seen moderate improvement over the previous month. February’s performance of 671 launched units is 22 percent higher compared to January, while sales of 724 units is a strong 28 percent over the same period. Although Rivertrees Residences and Riverbank @ Fernvale were cautious to release only half the number of units in February, both contributed with strong take up rates of 73 percent to 84 percent. Notwithstanding the encouraging improvement, sales remain 57 percent below the average of 1,600 units witnessed in the first half of 2013 – which might suggest that although market was dampened, it is now somewhat stable eight months after the implementation of Total Debt Servicing Ratio (TDSR). Both newly launched projects this month - Rivertrees Residences and Riverbank @ Fernvale are located within the Sengkang West vicinity and of similar development size. Despite being strong competition to each other, both adopted competitive pricing strategy with median pricing of $1,033 to $1,111 psf, achieving strong take up rates in their first month of sale. Rivertrees Residences sold 218 units out of 300 units released while Riverbank @ Fernvale sold 211 units out of 250 units launched. Both projects have the potential to release another 500 units collectively in the next few months. Dr Chua Yang Liang, Head of Research & consultancy, South East Asia comments: “We notice that the recent policy intervention continues to have a sustained effect across the market compared to previous interventions. With tightened loan policies, buyers are more discerning while developers are responding accordingly. The conditions today require developers to be more sensitive to the market where value for money is key.”
Posted on: Mon, 17 Mar 2014 09:52:52 +0000
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