PDF versionSingapore, - Based on the latest URA monthly statistics, improvement in the private real estate market
witnessed in the month of May 2008, endured through July 2008 when 1,322 units were reportedly launched for
sale in July, an expansion of around 250 units over the previous month. This however was not as significant a
climb as compared to the 124.6% month-on-month (mom) escalation in the preceding month of June. Similarly,
the total number of units sold by developers climbed from 801 units sold in June to 897 units in July, a rise of
12.0% mom.
However, developers launched more residential units for sale than they were able to sell in July. In terms of the ratio of new sales to the number of units launched, this figure continued to decline, albeit by a smaller 7.1 percentage points to register at 67.9%. As a result, the stock of unsold homes in the developers’ inventory would gradually increase.
The most active region in July in terms of sales and launches was the suburban Outside Central Region (OCR). Despite the mid-tier Rest of Central Region (RCR) still boasting a substantial number of launches in July, the region with the greatest proportion of units launched for sale shifted from the from this region in June 2008 to the suburban OCR in July 2008. Specifically, the number of units launched was observed to be sizeable when it grew by about three times to record 636 units and also comprised 48.1% of the proportion of launches in July 2008. Projects that contributed to the increase in launches for the mass market region was Livia, located at Pasir Ris Drive 1 which consisted of 360 units and Kovan Residences, situated at Kovan Road which comprised a total of 120 units. Going forward, it is likely that the volume of launches in the Outside Central Region is not expected to grow as there are fewer mass-market projects that are ready for launch in the remainder of 2008. On the other hand, the prime Core Central Region (CCR) area, which experienced a wane in launches by 40.7% mom was also a corresponding 9.9% of the proportion of all launches in the month. It is also anticipated that for the prime market, developers would hold back their high-end projects if the market cannot support their asking prices.
Pertaining to sales, total new sales climbed by almost 100 units where the suburban Outside Central Region was
the only sub-market that experienced a rise in sales volume, expanding by 197.8% mom. Conversely,
performance in both the other regions underwent a sharp decline in sales, easing by 49.7% in the prime Core
Central Region and by 39.6% in the mid-tier Rest of Central Region.
Median prices of new sales dipped by 2.9% to achieve S$1,035 psf compared to S$1,066 in February. In terms of the number of units that transacted above S$4,000, the month of March saw this increase slightly to 2 units sold above that price. The development that recorded the lowest transacted price is The Quartz at S$485 psf located at Buangkok Drive/Sengkang Central while the development that achieved the highest price is Scotts Square, situated on Scotts Road at a price of S$4,612 psf.
Persistent weak performance in the high-end segment in July is reflected by the absence of transactions above S$4,000 psf for non-landed property in the primary market. The development that reported the lowest transacted price was Bliss Residences at S$418 psf located at Jalan Masjid. This is the second lowest reported median price of a new project since the monthly data was made available in June 2007. On the contrary, the development that achieved the highest price was The Hamilton Scotts, situated on Scotts Road, at a price of S$3,676 psf.
Nicholas Mak, Director of Consultancy & Research Department, Knight Frank, +65 6228 6821
Knight Frank and its New York-based partner, Newmark Knight Frank, operate over 140 offices in established and emerging property markets on five continents. Last year, the companies handled transactions valued at over $41billion with annual revenues of over $545 million.
For more information about Knight Frank, please visit www.knightfrank.com
Nicholas Mak, Director of Consultancy & Research Department, Knight Frank, +65 6228 6821
Knight Frank and its New York-based partner, Newmark Knight Frank, operate over 140 offices in established and emerging property markets on five continents. Last year, the companies handled transactions valued at over $41billion with annual revenues of over $545 million.
For more information about Knight Frank, please visit www.knightfrank.com