The year-end festivities are in full swing and while the streets fill with yuletide cheer, the real estate market bids a quiet adieu to the year.
Festive season corresponds with a quieter property sector
Though November’s new private home sales volume did not slide into the negatives, it did only inch up 3.3%. 785 units were sold last month. There is however a 8.7% fall in comparison with November 2016.
The market has shifted in the favour of private property sellers as developers hold back on new launches. From last December to November this year, developers have sold more units than they have released. This could indicate that developers are holding back in wait for a price recovery, which is already happening. But there is potential for further price-rises next year.
Developers strategies shift from softening to recovering market
The 450 private homes launched last month was 86% more than that in October, but still 67% lower than November last year. 3 condominiums were launched in November – Rezi 35 in Geylang, Parc Botannia in Fernvale and Link Residence @ Holland.
Related: 17,000 new flats scheduled for 2018
Parc Botannia only launched half of its 735 units and have sold 70% at a median price of $1,287 psf. The number of units released is conservative considering the neighbouring High Park Residences launched 80% of its 1,399 units in 2015. It was almost sold out at a median price of $989 psf. The competition between executive condominiums (EC) and private properties could become stronger as more ECs launch next year. This year, only 1,555 new EC units were launched between January and November.