Chart of the Day: Unit sales down 10% in H1

Pent-up demand and future launches likely to boost sales in H2.

This chart from Jefferies shows that H1 sales excluding executive condominiums (EC) was 10% lower YoY with 4018 units sold, notwithstanding the growth of sales in June.

Jefferies notes that assuming new cases in the local community stay low as Phase 2 progresses, project launches are likely to gather pace. Agents expect 40-50 launches this year with The Forett at Bukit Timah and Penrose likely to be launched this month and next month. Jefferies maintains its full year sales assumption of 8500 units.

Further, demand is expected to gravitate towards larger sized units and unit prices of those are likely to be priced higher. The increase in construction costs are driven by various factors such as supply disruptions, safety practices, changing dynamics within the construction industry, etc.