Sales of new developer-launched properties fell 30% last month on the back of fewer launches.
3 launches and 444 new private homes in April
There were only 3 launches in April, with 444 new private homes released for sale by developers.
The 75% drop from March’s 1,812 units when 10 new projects were launched meant this was the lowest number of units launched in a month thus far. Compared to April 2018 when 664 units were launched, last month’s figures were still 33% lower.
Overall, developers sold 735 private homes last month, down from the 1,054 units sold in March.
Despite the launch of fewer units in a year-on-year comparison, the number units sold in April this year were comparable to the 733 units sold in April 2018.
Buyers are expected to remain price sensitive. Last month’s figures showed that the lowest-priced projects in the city fringes such as The Tre Ver fared the best while those similarly priced in the suburbs also did well.
Mass-market non-landed properties continue to do well, as seen in the market segment making up 96.2% of last month’s sales.
Most buyers went for units from earlier launches
Out of the 735 private homes sold last month, only 3.8% were from the month’s new launches. Most buyers went for units previously launched in earlier months.
Analysts are concerned that this could signify a lack of buyer-demand and that supply is fast surpassing demand. April’s decline in sales followed a low take-up rate in March.
Developers may have adjusted their launch dates accordingly, scaling back the number of units launched to avoid poor sales.
Some projects that had a fairly good showing in March continued to do so in April. These include:
- The Tre Ver – 81 units sold at a median price of $1,624 psf.
- Parc Botannia – 61 units sold at a median price of $1,294 psf.
- Treasure at Tampines – 51 units sold at a median price of $1,326 psf
- Riverfront Residences – 50 units sold at a median price of $1,308 psf
65% of last month’s sales were for properties priced $1.5 million and below, hinting at buyers’ price-sensitivity. Upcoming executive condominium launches may attract eyeballs as the new EC in Sumang Walk in Punggol could be just what HDB upgraders in the area are looking for.