Festive Period causes 28% drop in February for New Home Sales, due to absence of launches.

Festive Period causes 28% drop in February for New Home Sales, due to absence of launches.

According to the Urban Redevelopment Authority of Singapore, only 377 private homes were sold and transacted (excluding executive condominiums) in February. Analysts indicate that the drop in 28% drop in sales, from the 524 units sold in January, was attributed to the Chinese New Year festivities where developers held back their launches. The lack of inventory and supply for real estate private homes thus resulted in a drop in the hype and build up for potential purchase.

Ms Tan Siew May, a potential home-owner and buyer in the first quarter of 2018, spoke out to us that she is “waiting for an upcoming launch Margaret Ville in Queenstown before looking at other areas”. It seems that many buyers are waiting out this dull season before proceeding to dive into the property market, especially when most showrooms are currently unavailable.

In fact, there were only two new launches.

  1. Parksuites, a 119-unit project by Far East Organization in Holland Grove, soft-launched 50 units and sold three at a median price of S$2,215 psf.
  2. Nim Collection, a 99-year leasehold landed development, launched 26 units and sold three units as well, at a median price of S$1,661 psf.

Making a comparison with past year, Ong Teck Hui, national director of research & consultancy at JLL,  said Feb 2018’s figures were actually comparable to those in January 2017 – the Chinese New Year month last year. with some 108 units launched and 382 units sold then.

Huttons Asia - New Home Sales in Feb

“So the low-key performance in February is not indicative of a market slowdown,” he added. “Notwithstanding the festive period in February and the dearth of new launches, buyers were still house-hunting among previously launched projects, resulting in sales from these accounting for 98.4 per cent of total new private home sales during the month. This is indicative of ongoing interest among home buyers.”

Developers are not sitting back this period either. It was noted that the average psf for previously launched projects have rose, and they are expected to continue to time their launches to benefit from a further recovery in residential prices.

For example, median prices at Kingsford Waterbay at in Upper Serangoon have increased from S$1,111 psf in March 2015 to S$1,349 psf in Feb 2018. Grandeur Park Residences near Tanah Merah MRT has also seen its median price rise from S$1,406 psf at launch in March 2017 to S$1,487 psf in Feb 2018, as it reaches its 90-per-cent sold mark.

Year-on-year, sales suffered a 61.5% drop from the 979 units sold in Feb 2017. This is mainly due to the lack of ECs as there will only be two EC launches combined in both 2018 and 2019.

This also means the depleted supply was part of the main cause of the drastic fall in sales.

It is noteworthy to observe that the recent EC – Hundred Palms Residences that is situated at Yio Chu Kang Road, faced a high demand as the 531 units were sold out just under 7 hours last year. Excluding Rivercove Residences which is yet to be launched, there were only 212 unsold EC units in projects under marketing. This is only a small fraction of the 2,514 unsold EC units being marketed one year ago.

Analysts expect home buyers and upgraders to move quickly to purchase existing stocks of available EC units especially before prices start to increase, as anticipated to after the government sold the Sumang Walk EC site to a City Developments joint venture at a record land price of S$583 psf per plot ratio, which could translate to a break-even cost of close to $1,000 psf for its completed units.

If the market sentiment continues to remain sanguine through the year, the primary market sales could range between 11,000 and 14,000 private housing units in 2018.

About Author

This news update is written and submitted by Gary Lee, owner of margaretville.sg. Gary is an expert and experienced realtor who knows the Singapore market in and out. He specializes in HDB and Condominiums investing.

Everything you need to know about The Garden Residences at one glance

Everything you need to know about The Garden Residences at one glance

About The Garden Residences

The Garden Residences is a 99-year condominium launched in Serangoon North Estate and Serangoon Gardens. An iconic building in the vicinity, designed with space, living, and uncompromising in views and locality. Led by Keppel and Wing Tai Joint Venture, it will be a building for the ages, for the generations with luxurious fittings and incomparable qualities.

The site is within URA’s Serangoon Planning area. Comparative developments in the area includes Kensington Park, Serangoon Ville Enbloc by Oxley Holdings. Slightly further to the East will be Terrasse. There has been a drought for new condominium launches in the estate and so The Garden Residences together with Serangoon Ville will rejuvenate and revitalize the area, bringing value and injecting a lease of excitement and opportunities into the estate

Park Colonial Location Map

This land parcel on original address of 15 Serangoon North Avenue 1 has recently been tendered by major and giant property developers, Keppel Land and Wing Tai Holdings. This site was successfully bidded and now will house the upcoming development, The Garden Residences Serangoon, it is an ideal place planned to become a residential condominium ideal for individuals looking to settle in this private and charming area of Singapore.

The top bid for this highly competitive site for The Garden Residences site reached an impressive $446.28 million from the Joint Venture Developers, worthy also to note with the second-highest bid of $418.7 million having been placed by Frasers Centrepoint’s FCL Residences. Experts and land economists have noted these aggressive bids by many competing property developers recently as a reflection of the rising value and brighter optimism of Singapore’s real estate market.

Read More: The Garden Residences Prices & Project Details

Notable Price Bids

  • This public tender for a private residential site in Serangoon North Avenue 1 attracted 16 bids.
  • Corson and Wingjoy Investment – units of Keppel Land and Wing Tai Holdings – jointly placed the top bid of $446.28 million, the Urban Redevelopment Authority (URA) said on Thursday (July 27).
  • The price works out to about $964.8 per sq ft per plot ratio for the 99-year leasehold plot, which could yield 505 private homes.
  • The top bid was about 6.6 per cent higher than the second of $418.7 million tabled by FCL Residences.
  • Singland Homes and UOL Venture Investments jointly submitted the third highest bid at $417.2 million.
  • The site has a land area of 17,189.1 sq m and permissible gross floor area of 42,973 sq m.
  • It was put up for sale under the confirmed list of the Government Land Sales programme for the first half of the year.

The Garden Residences Price History

Reasons to Invest in The Garden Residences

  • Excellent Connectivity
  • Near Prestigious Schools and Education Hub
  • Centralized Location and Minutes to Orchard Road, Vivocity, CBD and Marina Bay
  • Near to Amenities such as shopping centres and Chomp Chomp Food Centre.
  • Strong Tenant Base and expatriate demand from Lycee Francais de Singapour
  • Strong Tenant Base from Surrounding Business Parks such as Amk Industrial Park and Serangoon North Industrial Estate
  • Great for Families near good schools and strong amenities
  • Luxurious Living and Fittings

The Garden Residences Logo

Area is one of the vital things that you have to consider when buying Singapore condos. Before you can really decide the best area for your home, you should decide first the kind of neighborhood that you need to live in. It’s fortunate that these properties are situated in the most brilliant areas in the city. Obviously it is as yet imperative to decide the correct area that you needed for your home before you at last settle on a choice keeping in mind the end goal to maintain a strategic distance from laments later on. You need to remember that usefulness is critical and the area must give the specific advantages you are searching for.