Developer sales of private homes and ECs highest in 4 years in 2017
Developer sales of private homes and executive condominiums (ECs) hit the highest in four years last year.
There were 14,707 units moved, according to early estimates, 23 per cent higher than the 11,971 units sold in 2016. This included 10,682 private residential units, 34 per cent more than the 7,972 units sold in 2016.
Sales of ECs held steady at around 4,000 last year, according to data compiled by the Urban Redevelopment Authority (URA).
"The encouraging sales volume and the pick-up in home prices in the second half of 2017 signalled that the private residential market has turned a corner, and should continue to recover this year," said Ms Tricia Song, head of Singapore research at Colliers International.
About 25 major private non-landed projects with the potential to yield 15,000 to 16,000 units (excluding ECs) could be put on the market in 2018, she added.
Cushman & Wakefield research director Christine Li said the 2017 sales tally could have been higher but several developers held back launches in anticipation of an expected upturn in prices this year.
Developers have pared unsold inventories in older existing projects, with most of the top 20 sellers in December already more than 80 per cent sold.
"As such, we could see high sales volumes in 2018, as the launch pipeline expands due to expected launches from the en-bloc market, government land sale sites and re-launches from existing projects," Ms Li added.
"We expect around 13,000 to 14,000 units sold by developers in 2018."
JLL national director of research and consultancy Ong Teck Hui estimated that 9,000 to 10,000 private residential units could be launched this year, and together with about 2,000 units unsold in launched projects, should provide a healthy level of supply.
The diverse risk appetite that developers have demonstrated in their land bids have drawn varied projections from consultants on the potential price increase this year - from 3 per cent to as high as 15 per cent, following a 1 per cent uptick last year.
"If launches are slowed deliberately and pricing becomes over-optimistic, sales could be less brisk than anticipated," Mr Ong said.