Cooling Measures: August Aftermath In Volume And Price

Market watchers eagerly anticipated the release of developers’ sales figures for the month of August. Not surprisingly, sales volume fell as a result of the cooling measures, and also partly because it was also the 7th Lunar Month, which is often perceived as an “inauspicious period” for home viewing and purchase.

In August, developers supplied 534 new homes for sale, and sold a total of 516 units. Top movers were The Tre Ver which sold 164 units, Stirling Residences (91 units) and Park Colonial (79 units). All three properties are located in the Rest Of Central Region (RCR).

Among the 5 residential projects that were launched are the following four condominiums:

Development Total No. of Units No. of Units Launched No. of Units Sold Median Price (psf)
8 Saint Thomas 250 79 18 $3,215
Casa Al Mare 49 49 9 $1,596
Mont Botanik Residence 108 54 2 $1,979
The Tre Ver 729 200 164 $1,551

In addition, One Tree Hill Collection launched and sold a semi-detached house at $8.94 million (or $3,042 psf). It has a total of two detached and 12 semi-detached houses.

Over the months of July and August, 2,773 units were launched and 2,240 units were sold. From January to August, a total of 6,131 units have been launched and 6,187 units sold over the period. Contrast this to the 5,356 units launched (12 per cent lower) and 7,151 units sold (16 per cent higher) one year ago. Clearly, the take-up rate of new homes in 2018 is slower than that in 2017.

The following are some expected new launches coming up. We could see developers selling another 2,000 units or more if they price their units competitively. The total number of new sales for the year is estimated at 8,000 to 8,500 units, which is around 25 per cent less than 2017.

  • Jadescape at Shunfu Road
  • Jui Residences at Serangoon Road
  • Jovell at Flora Drive
  • Mayfair Gardens
  • The Addition at Meyappa Chettiar Road
  • Treasure At Tampines
  • Woodleigh Residences
  • Parc Esta
  • Kent Ridge Hill

Private resale prices show resilience with just a 0.2% dip

The cooling measures also affected the resale market, albeit marginally, as resale prices of private non-landed homes (i.e. condominiums and private apartments) fell by 0.2 per cent in August after 12 months of continuous increases. While some market observers had expected prices to still increase, though by a slower pace, considering what some would call a “double whammy” of new cooling measures and the 7th Lunar Month, some would actually consider that the property market has delivered a resilient performance. In fact, resale prices for Outside of Central Region (OCR) still rose 0.8 per cent in August. Overall, resale prices have risen by 8.8 per cent this year and are 11.2 per cent higher than what it was one year ago.

The volume of transactions in the resale market also saw a significant drop, numbering an estimated 694 private non-landed homes. This is down 35.4 per cent from 1,072 units in July, and also constitutes a drop of 48.3 per cent when compared to the 1,339 resale units that were transacted in August 2017.