Private home sales not expected to top 2017’s
Developers reaped their rewards in May with buoyant sales of new private homes but hopes that transactions for the full year will top 2017's level are fading.
There were 1,121 units shifted last month, 53 per cent up on April and 8 per cent more than the same month last year.
But the bigger picture tells its own story: 4,427 private homes and executive condominiums were sold in the first five months of the year - 40 per cent down on the 7,388 units moved in the same period last year, the Urban Redevelopment Authority noted yesterday.
That leaves a big gap to overhaul if total sales this year are to surpass 2017.
"The implication is sales will have to pick up strongly, especially in the second half of 2018 if 2017's new (private) home sales of 10,566 units is to be matched or surpassed," said JLL national director of research and consultancy Ong Teck Hui.
JPMorgan property analyst Brandon Lee pointed to major developments in the second half that could dampen sentiment.
One is rising mortgage rates that might cause marginal buyers to take a longer time to commit.
The sustainability of the collective sales cycle and Government Land Sales programme for the second half could also determine whether more projects are launched.
May's two major launches were Twin Vew, which sold 87 per cent of 520 units at a median price of $1,385 per square foot (psf), and UOL Group's Amber 45, where 62 per cent of 139 units were snapped up at $2,378 psf.
There were also smaller launches - Oxley Holding's Sixteen35 Residences sold 45 units at a median price of $1,511 psf while its Sea Pavilion Residences saw 14 of 24 units taken up at a median price of $1,852 psf.
While sales are lagging this year, Ms Tricia Song, Colliers International's Singapore research head, is among those confident that momentum will catch up in the second half of the year. - THE STRAITS TIMES
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