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Private residential sales up over 71% in 1H 2017

As we foray into the second half of 2017, let us have a look back at what’s happened so far.

In June 2017, developers sold a total of 820 new private residential homes. In the same month, the 26-unit Park 1 Suites in Geylang was the only new project launched. The best selling private residential project was The Santorini with over 75 units sold in the month of June 2017, at a median price of $1,026 psf. Following closely was Parc Riviera (55 units sold at a median price of $1,218 psf) and Commonwealth Towers (47 units at a median price of $1,899 psf).

Overall, June 2017 reflected a 21.1% decline compared to May 2017. Despite that, the total number of private residential units sold in the first half of 2017 was 6,388. This figure, reported Business Times citing Urban Redevelopment Authority (URA) preliminary data, is over 73% increase over the same period back in 2016. On a quarterly stand point, the private residential sales figure increased by 15.7% quarterly and 51.9% yearly to 3,426 in Q2 2017.

Industry experts such as Jones Lang (JLL) described the sale figure as the since the second quarter of 2013, before the introduction of the Total Debt Servicing Ratio (TDSR) framework by the Government.
The 6,388 units transacted in 1H 2017, on the other hand, marked a significant recovery from 2H 2014’s 2,907 units sold, albeit still lower than the 9,950 units moved in 1H 2013 before the TDSR kicked in.

“This analysis points towards a market that has regained confidence and recovered substantially in transaction volume,” said Ong Teck Hui, JLL’s national director.

On the executive condominium (EC) market front, developers moved 992 units in Q2, down from the 1,072 units sold during the previous quarter and the 1,105 units transacted over the same period last year.

The 2,064 units sold in 1H 2017 is a little over half the 3,999 units transacted in the whole of last year. With this, Mohamed Ismail, chief executive of PropNex Realty, expects developers to sell around 3,500 units by year-end, while Eugene Lim, ERA Realty Network’s key executive officer, forecast between 3,000 and 4,000.

Excluding ECs, Lim expects developers to sell between 10,000 and 12,000 private homes, while Ismail predicts over 11,500 units, on the back of the current positive market sentiment. Predicting the figure to hit 12,500, Ong expects URA’s benchmark private home price index to bottom by year-end or early-2018.

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