Fewer launches in April accounted for dip in new home sales

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.

Coastline Residences, Condo.

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.

The 3 projects launched last month were Coastline Residences, Mayfair Modern and Wilshire Residences.

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.

Parc Botannia, Condo.

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.

See more: Sales of resale HDB flats rose 16.5% in April