With just slightly more than a month between Christmas and the Lunar New Year, the pre- and post-festivities busyness may be the reason behind a 28% fall in new home sales last month.
January usually a slow month for the property market
While property market activity is typically slower in the first month of the year, this year’s impact may have been a little stronger due to the shorter time span between Christmas and the Lunar New Year. The market may also still be feeling the residual effect of July’s property cooling measures.
The number of new launches this January was higher than that in December as well as January last year in month-on-month and year-on-year comparisons respectively.
Developers released 498 private homes last month, almost five times that of the 101 units released in December and 97% more than the 253 units launched in January 2018.
433 new homes sold in January, down 28% from the 602 units sold in December and 17.8% down from the 527 units sold in January last year.
Buyers taking a wait-and-see approach to property shopping
Analysts are seeing more property buyers adopting the wait-and-see approach as they exercise caution after the few rounds of property curbs implemented over the last few years.
24% of January’s sales of new homes were in the prime districts, where most of the launches took place, namely Fourth Avenue Residences in Bukit Timah, Fyve Derbyshire in Derbyshire Road and RV Altitude in River Valley Road. 74 units with an average price of $2,412 psf were sold at Fourth Avenue Residences which was one of January’s top sellers.
Buyers’ response to launches in these price-sensitive areas has been positive, boosting the confidence of future launches. Developers are expected to launch more than 4,000 new luxury homes this year.
While there were no new launches in the city fringes or suburbs, sales from older launches such as Affinity at Serangoon, Parc Botannia and Stirling Residences made up the rest of January’s sale figures.