New private home sales increase month-on-month in March, Tiong Bahru, Pasir Ris and Tampines: additional hotspots for expatriate rentals, 40 per cent of North Park Residences sold, Mass market sentiments remain strong despite supply surge
New private home sales increase month-on-month in March
New private home sales rose 57 per cent from February, with 613 new homes sold in March, excluding executive condominiums. Figures leapt ahead of January, which registered 390 sales, and February, when 376 units were sold. This despite similarities in the numbers of units launched each month since January. As seen in previous months, new private housing in suburban areas continued to attract buyers, this time contributing to 63.8 per cent of total sales.
The overall sales figure of 1,379 units, from January to March 2015, was lower than the same period in 2014, which registered 1,791 units. There was an even sharper drop from Q1 2013 when 5,533 units were sold.
Kingsford Waterbay in Upper Serangoon was the top selling project, with 155 units sold, at an average price of S$1,111 per square foot (psf). Sims Drive’s Sims Urban Oasis came in second, with 107 units, at a median price of S$1,401 psf. City Gate and The Skywoods, launched earlier, cleared 28 and 27 units respectively.
Property analysts told Channel NewsAsia that pricing was the main driver for sales in March, with many buyers locking in their decisions quickly due to anticipated rising interest rates. Analysts expect that property cooling measures and mortgage-tightening rules will continue to cause sales to move slowly. As more projects with reasonable price tags may launch later this year however, there may also be a slight boost in sales.
Tiong Bahru, Pasir Ris and Tampines: additional hotspots for expatriate rentals
In addition to earlier reports on Yishun, Sembawang and Seletar attracting expatriate rentals, Jones Lang La Salle (JLL) has identified that expatriates are showing more interest in districts 3, 16, 17 and 18. District 3, which includes areas such as Alexandra Road, Tiong Bahru, and Queenstown, is rising in popularity due to its close proximity to the city and lower accommodation costs. The development of business parks within Districts 16 (Bedok, Siglap), 17 (Changi, Loyang) and 18 (Tampines, Pasir Ris) is also attracting more homebuyers. Spacious and affordably priced housing in East Coast neighbourhoods remains a top choice among expatriates.
40 per cent of North Park Residences sold
About 400 out of North Park Residences’ 920 units were sold at the property’s soft launch last week. Buyers were attracted to North Park Residences’ promising location in Yishun, as well as its proximity to amenities and transport hubs. The Chief Executive Officer (CEO) of Development and Property for Frasers Centrepoint, Mr Cheang Kok Kheong, noted that some buyers purchased for personal use, while others purchased for investment purposes. Many in their 40s and 50s are beginning to invest in areas such as Yishun, an area with healthcare facilities including Khoo Teck Puat Hospital.
Mass market sentiments remain strong despite supply surge
The quick uptake of Yishun’s North Park Residences and Botanique at Bartley suggests that mass market sentiments remain strong. Over 300 units were sold at North Park, despite its fairly bold pricing, attributed to its close proximity to an integrated development. More than 150 units were booked at the Botanique at Bartley private sales event.
A report by Maybank Kim Eng noted that the results seen in North Park Residences and Botanique at Bartley suggest that mass market prices have yet to correct meaningfully and will stay sticky despite the surge in homes.