Private home sales report 94% take-up rate in November

1,854 out of the 1,979 units launched were sold also reflecting 13% month-on-month increase from October’s sale.

Launch Activity

The number of private residential units launched in the month of November 2011 totaled 1,979 units, 48% m­o­m increase compared to October 2011, data from URA show. At 1,979 units, this was a resurge in the units released after it moderated from 2,493 units launched in September to 1,338 units launched in October.

According to R’ST Research Director Ong Kah Seng, the surge in units released in November somehow reflected that notwithstanding the worldwide economic crisis particularly in US and Europe, developers were keen in releasing projects which are launch ready, after carefully monitoring overall market conditions and home buyers’ interest.

The Outside Central Region (OCR) continued to account for the spotlight, with 1,518 units which were released by developers. This was more than twice the 682 units which were released in OCR in October.

Launch activity however fell by 25% m-o-m in the Rest of Central Region (RCR), where 323 units were released in November. Launch activity also fell in the Core Central Region (CCR), with 138 units released, down 39% compared to October.

“The sluggish launch activity was partly due to limited stock available for launch as well as the sombre economic conditions which cannot seem to support sales momentum and price growth for prime residential properties,” said Mr. Ong.

Home Sales

The launches in November were met with encouraging homebuyers’ interest. 1,854 units (including ECs) were sold by developers in November, reflecting a take-up rate of about 94%, versus the units launched in Nov. This was also an increase of 13% vis-à-vis that sold in October.

Sales activity was most buoyant in the OCR, with 1,481 units sold (include ECs), reflecting a 30% increase compared to that sold in October. Topping the sales list for projects in OCR are Bedok Residences (477 units sold in Nov), The Palette (367 units sold in Nov) and Parc Vera (83 units sold in Nov). For Bedok Residences, this was a sales rate of 82% of the 583 units launched in November. According to Mr. Ong, that indicated strong buyers’ interest for projects which are strategically located in choice suburban areas.

Developer sales in the RCR however fell by 31% m-o-m in November, with 291 units sold, but the fall in sales activity was in line with fewer units launched. Developer sales activity continued to be subdued in CCR, where 82 units were sold by developers in November.

Mr. Ong notes that although homebuying interest was evidently revived in the OCR only, it is quite reflective of strong desire to purchase private residential properties across Singapore. “Firstly, the OCR is the region which offers the most number of private homes and a strong buying interest amid the ample supply indicates that the desire to purchase a private property is burgeoning,” he said.

“Also, the rebound happened amid severe global economic challenges, raising concerns of whether property performance is in line with economic fundamentals. The concern (leading to the latest cooling measures) can also be viewed from the perspective that while private homebuying interest is strong (in Nov), but whether the desire and homebuyers who committed are being rational, including some who may have stretched affordability thresholds and committed to a purchase for fears of possible further price increase,” Mr. Ong added.
 

To contact the journalist, you may send your message to krisana@charltonmediamail.com