Hard times, lean deals: Massive crash in private home sales feared in FY14

May’s stellar take-up simply isn’t enough.

Private developers are in for difficult news. Even after the stellar take-up of private homes in May, primary private home sales are still expected to dip 33% in 2014, according to OCBC.

According to the report, FY14 primary home sales are expected to slide to 10k units, with prices in the mass-market segment more at risk compared to mid-tier and high-end developments.

“We forecast FY14 primary private home sales to dip 33% to 10k units, and see prices in mass-market segment to be more at risk versus the mid-tier and high end. A positive catalyst over the mid-term could be the reversal of certain government curbs once headline prices (the URA price index) shows a decline in excess of ~10%,” noted OCBC.

Here’s more from OCBC:
In May-14, despite a 92% MoM pop in monthly sales to 1,528 units, the take-up rate of 82% in the month was lower on both a MoM and YoY basis (125% in Apr-14; 97% in May-13).

The eight new launches showed a diverse range of performance, with take-up rates ranging from 10% to 98%.

Amongst the four new mass-market launches, in particular, we found that developers that
were willing to price their projects competitively, such as Coco Palms (98% of launched units sold), performed better.

Also Read

One Sophia sells 30% of units at weekend launch

Turf City sites could deliver up to 800 public housing units: Huttons

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit