Demand falling for Singapore properties

Reading Time: 2 minutes
By Chua-Yang-Liang

The latest data from the Urban Redevelopment Authority in Singapore shows that demand for new residential properties has fallen for the second consecutive month. Sales volume for private residential units, excluding executive condominiums, fell by 20 per cent month-on-month in June 2012 to 1,371 units, bringing the total for the first half of 2012 to 12,254 units. This is some 48 per cent above the total sales in the first half of 2011 and already approaching the 2011 total of 16,369 units following the bumper take-up between February and April 2012 when sales averaged in excess of 2,400 units per month.

The Outside Central Region (OCR) continues to perform well with total sales in June remaining above 1,000 units at 1,111, a decrease of 8 per cent month-on-month. The number of units launched remained flat, with just three more units launched in June than in May, a total of 1,138. As a result, the take-up rate was close to 100 per cent with 98 per cent of all units launched being sold. There were three new non-landed projects launched in June, Tropika East (105 units), Sea Esta (376 units) and River Isles (442 units). These projects all achieved sales of more than 50 per cent in the month, with Sea Esta showing the strongest performance with 68 per cent of units sold. Elsewhere, buyers continue to soak up supply from previous launches, with several projects continuing to sell units without any launches this month.

The Core Central Region (CCR) was the only region to enjoy an increase in sales volume in June, as the launch of 1919 at Mount Sophia proved popular with buyers and 74 of the 75 units at the development were sold at a median price of SGD 2,042 per sq ft. Overall, 141 units were sold, an increase of 4 per cent month-on-month, with the sales at 1919 making up 52 per cent of this. Sales also remained steady at previously launched projects including The Trizon and EON Shenton which are now 88 per cent and 85 per cent sold, respectively. Launches however fell steeply in the CCR in June, down by 70 per cent month-on-month to 94 units translating to a healthy take-up rate of 150 per cent, helping to soak up some of the excess supply in this region.

The Rest of Central Region (RCR) saw steep falls in both the number of units launched and sold in June 2012, falling by 93 per cent month-on-month to 71 units and 67 per cent to 119 units respectively. This reflects the highest take-up rate of all three regions in June at 168 per cent. There was only one new launch in the RCR in June, namely M66, where 70 units were launched, with the remaining addition a single unit at Ascentia Sky. Only 10 units were sold at M66, with previously launched projects proving more popular with buyers.

Previous policy intervention is now starting to work its way through the market and buyers are returning, especially to the CCR, as landlords become more flexible on pricing and the price gap between the CCR and OCR narrows generating more buying interest. Singaporeans are increasingly supporting sales volume in this region, helping to soak up the unsold inventory.

About the author
Yang Liang Chua is Head of Research for Singapore and South East Asia at Jones Lang LaSalle.

Read more under Jones Lang LaSalle’s
Asia Pacific Real Estate Blog

 

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Reading Time: 2 minutes

By Chua-Yang-Liang

The latest data from the Urban Redevelopment Authority in Singapore shows that demand for new residential properties has fallen for the second consecutive month. Sales volume for private residential units, excluding executive condominiums, fell by 20 per cent month-on-month in June 2012 to 1,371 units, bringing the total for the first half of 2012 to 12,254 units. This is some 48 per cent above the total sales in the first half of 2011 and already approaching the 2011 total of 16,369 units following the bumper take-up between February and April 2012 when sales averaged in excess of 2,400 units per month.

Reading Time: 2 minutes

By Chua-Yang-Liang

The latest data from the Urban Redevelopment Authority in Singapore shows that demand for new residential properties has fallen for the second consecutive month. Sales volume for private residential units, excluding executive condominiums, fell by 20 per cent month-on-month in June 2012 to 1,371 units, bringing the total for the first half of 2012 to 12,254 units. This is some 48 per cent above the total sales in the first half of 2011 and already approaching the 2011 total of 16,369 units following the bumper take-up between February and April 2012 when sales averaged in excess of 2,400 units per month.

The Outside Central Region (OCR) continues to perform well with total sales in June remaining above 1,000 units at 1,111, a decrease of 8 per cent month-on-month. The number of units launched remained flat, with just three more units launched in June than in May, a total of 1,138. As a result, the take-up rate was close to 100 per cent with 98 per cent of all units launched being sold. There were three new non-landed projects launched in June, Tropika East (105 units), Sea Esta (376 units) and River Isles (442 units). These projects all achieved sales of more than 50 per cent in the month, with Sea Esta showing the strongest performance with 68 per cent of units sold. Elsewhere, buyers continue to soak up supply from previous launches, with several projects continuing to sell units without any launches this month.

The Core Central Region (CCR) was the only region to enjoy an increase in sales volume in June, as the launch of 1919 at Mount Sophia proved popular with buyers and 74 of the 75 units at the development were sold at a median price of SGD 2,042 per sq ft. Overall, 141 units were sold, an increase of 4 per cent month-on-month, with the sales at 1919 making up 52 per cent of this. Sales also remained steady at previously launched projects including The Trizon and EON Shenton which are now 88 per cent and 85 per cent sold, respectively. Launches however fell steeply in the CCR in June, down by 70 per cent month-on-month to 94 units translating to a healthy take-up rate of 150 per cent, helping to soak up some of the excess supply in this region.

The Rest of Central Region (RCR) saw steep falls in both the number of units launched and sold in June 2012, falling by 93 per cent month-on-month to 71 units and 67 per cent to 119 units respectively. This reflects the highest take-up rate of all three regions in June at 168 per cent. There was only one new launch in the RCR in June, namely M66, where 70 units were launched, with the remaining addition a single unit at Ascentia Sky. Only 10 units were sold at M66, with previously launched projects proving more popular with buyers.

Previous policy intervention is now starting to work its way through the market and buyers are returning, especially to the CCR, as landlords become more flexible on pricing and the price gap between the CCR and OCR narrows generating more buying interest. Singaporeans are increasingly supporting sales volume in this region, helping to soak up the unsold inventory.

About the author
Yang Liang Chua is Head of Research for Singapore and South East Asia at Jones Lang LaSalle.

Read more under Jones Lang LaSalle’s
Asia Pacific Real Estate Blog

 

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