third quarter of every year usually has a shorter sales period due to the
inauspicious Lunar Seventh Month which occurs around the month of August.
However, the attributes of new projects and their price points could
still optimise the
opportunity at hand.
2019, developers focused the release of new projects in July and September,
offering some 15 projects in all. Including new releases from earlier launches,
a total of 3,638 new homes were offered for sale, 45% more than the 2,502 new
homes launched in Q2 2019. A total of 3,281 new homes were sold. Not only was
this 40% higher than the preceding quarter, it was also the highest sales
volume since Q2 2013.
The warm receptivity of homebuyers helped to strengthen home prices, as reflected in the 1.3% q-o-q rise in the overall URA private residential price index. This brings the total climb in the price index to 12% since it bottomed out in Q2 2017. To put it plainly, in nine quarters, home prices have recovered the grounds they lost in 12 quarters.
regions, the price index for the Core Central Region
(CCR) rose by 2% q-o-q, supported by several high value sales of luxury
apartments. Second in line was the price index of the Rest of Central Region
(RCR) which was up by 1.3% q-o-q and finally, the
Outside Central Region (OCR) price index
which rose by a marginal 0.8% q-o-q.
More choices for homebuyers
of the significant launches in Q3 2019 included CCR’s Cuscaden
Reserve, Haus On Handy and Nouvel 18.
Mega-projects such as Avenue South Residence and One Pearl Bank in RCR were
debuted in the quarter, as well as Parc Clematis in OCR. We observed that
homebuyers were drawn to new projects at locations where there will be new
initiatives under the Draft Master Plan 2019.
Clematis was very well-received, achieving a take-up rate of 29% of its 1,468
units. It is located close to the evolving Jurong Lake District where there
will be exciting business and employment opportunities. Data from URA-Realis
shows that 20% of the buyers comprised permanent residents (PRs) and foreigners
(NPRs), which is exceptionally high for a mass-market project. Avenue South
Residence also saw a strong take-up of 33%, attributable to its proximity to
the Greater Southern Waterfront, a new major gateway for urban living along the
activity in the secondary market remained steady with a sales volume of 2,378
homes, similar to the 2,371 properties sold in Q2 2019. Nouvel 18,
a high-end development located close to the Ardmore Park enclave, was released
for sale in July at the average price of $3,300 psf. Completed in 2014, most of
the units have been leased out. Of the 16 units sold to date, 13 (81%) were
bought by PR and NPR investors.
total of 100 luxury apartments were sold in Q3 2019, slightly fewer than the
108 that were sold in the previous quarter. The most expensive deal was a
penthouse at 3 Orchard-By-The-Park that was sold for $32 mil ($4,638 psf).
Another significant sale was an 11th
floor unit at The Marq at
the price of $23 mil ($3,690 psf).
Besides these, six other apartments at TwentyOne Angullia Park, Le Nouvel Ardmore, Sculptura Ardmore and Wallich
Residence were sold between $9 mil and $17 mil, all above $4,000 psf. Clearly,
there is still a strong interest in well-located, good quality luxury
2019, 12 bungalows within the Good Class Bungalow (GCB) Areas were sold, compared to 10 in
Q2 2019. The most expensive GCB sold in Q3 2019 was one located at Astrid Hill
with a land area of 26,983 sq ft.
It fetched $47 mil ($1,742 psf).
Two other significant sales which was reported in media but could not be
verified were a brand new GCB at Cluny Road which fetched $41 mil ($2,715 psf) and
a huge GCB land at Nassim Road which sold for $230 mil ($2,720 psf).
There was no known villa transaction at Sentosa Cove in Q3 2019.
end-September, the tally for the entire luxury segment stood at 311 deals. PRs
and NPRs made up 70% of the homebuyers.
high-end projects that will be launched in Q4 2019 include Eden, Hyll On
Holland and Pullman Residences. New projects in other locations include Dairy
Farm Residences, Mattar
Residences and Urban Treasures.
Rental market & vacancy
residential rental index eased by 0.1% q-o-q in Q3 2019, compared to the 1.3%
q-o-q growth in Q2 2019. The weakening could be attributed to the landed
segment, which registered a -2.3% q-o-q change whereas the non-landed segment
was up by 0.4% q-o-q. A further breakdown by regions revealed that only the
non-landed rental index for RCR and OCR showed positive change of 1.6% and 0.8%
respectively, the CCR rental index posted a negative 0.7% q-o-q change.
poorer performance of the CCR leasing market was also reflected in its vacancy
rate, which edged up to 8.2% from 7.8% in Q2 2019. On the other hand, vacancy
rates for RCR and OCR improved by 40 basis points each from the previous
quarter to 6.0% and 5.3% respectively. The islandwide
vacancy rate stood at 6.1% with a total of 22,819 vacant units in Q3 2019.
The current lackluster business environment is probably the main reason for the weaker showing in CCR, traditionally a favourite location for expatriates. Besides trimming expatriate allowances, some MNCs had also repatriated their staff. As such, expatriates living in CCR either negotiated for lower rents or they moved to RCR and OCR where rents would be more affordable.
statistics revealed that another 2,440 new homes are due to be completed in Q4
2019. This will bring the total completions in 2019 to
7,669 units, lower than the 9,112 units completed in 2018. Estimated
completions for 2020 is a low 4,653 homes. Thereafter, new completions are
estimated to shoot up to 10,646 units in 2021 and 11,524 units in 2022, from
the pool of new projects currently being sold in the market.
Supply in the pipeline
end-September 2019, there were 50,964 private homes that were under
construction, slightly higher than the 50,674 units at end-June. This comprised
19,016 units (37%) which have been sold and 31,948 unsold units. Of the 31,948
unsold units, 18,589 units (58%) were from projects that were either launched
or not launched yet and 13,359 units (42%) from projects that did not have the
prerequisites for sale. These 31,948 unsold units are more
manageable than in Q2 2008, when the supply pipeline peaked at 43,400 units .
new projects which obtained approvals for development in Q2 2019 include the
projects at former Brookvale Park (648 units), former Tulip Garden (638 units),
as well as the sites sold by the government at
Kampong Java Road (378 units), Middle Road (522 units) and Sims Drive (566
next batch of new supply will come from the sites that were sold in Q3 2019.
From the private sector, a row of shophouses at Phoenix Road was sold for $42.6
mil. It could yield around 80 new homes. The government sold four sites located
at Clementi Avenue 1, Tan Quee Lan
Street and one-north Gateway. They could contribute a combined total of 1,700
is no land site for sale by the government in Q4 2019. The next two land
tenders will take place in January 2020. By scheduling a later tender date, the
government is indirectly easing the pipeline supply of residential homes.
Singapore economy narrowly avoided a technical recession in Q3 2019 based on
the government’s flash estimates of a GDP growth of 0.1% y-o-y. However, the
outlook is dim as global manufacturing momentum remains sluggish and labour
market softens. As market sentiments turn cautious, coupled with the holiday
season, we expect the Q4 2019 new home sales to be less than 2,000 units.
Prices of high-end homes are likely to remain stable but suburban home prices
would be under pressure.