Primary Sales Jul 2013

7/30/2019 Primary Sales Jul 2013

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15 August 2013| Singapore | Residential |

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Real Estate DataTrend

Lowest sales volume since December 2009

Based on the latest URA data, private developers sold 481 new homes in July,down 73.4% from 1,806 units in June. This is the lowest sales volume in 3.5years when developers also sold 481 units in December 2009. New launches fell68.5%, as developers only launched 557 units in July compared to 1,768 units inJune.

Prices resilient despite low volume

Despite the fall in volume, prices seemed resilient. Median prices in the outsideCentral Region (OCR) and Core Central Region (CCR) rose 4.2% and 14.4% m-o-mrespectively, while prices in the Rest of Central Region (RCR) fell 2% m-o-m.The median prices for CCR, RCR and OCR are $2,454, $1,517 and $1,261 psfrespectively.

Vue 8 Residence top performer in July

The best-selling project for July is Vue 8 Residence. It sold 63 units with amedian price of $1,004 psf. Vue 8 is a 99-year leasehold condo development byPublique Realty Pte Ltd. The developer only launched 100 out of 463 units inJuly. There is a lack of sizeable project launches in July, with only five projects- Vue 8 Residence, The Quinn, Devonshire 8, Riverside Melodies and TheSerenno made the debut in the month. The other five top selling projectswere existing projects such as Bartley Ridge, Jewel@Buangkok.

14 units in J Gateway returned

J Gateway sold another 15 units in July. Given that only 1 out of 738 units wereleft unsold in June, it can be deduced that there were 14 returned units in Julyand were subsequently re-sold to other buyers. Most likely, these 14 units werethe ones affected by the new total debt servicing ratio (TDSR) framework, assome buyers could not meet the deadline for loan approval before the newframework kicked in on June 29, 2013. In July, OCR projects continue todominate the new private home sales, taking 61.5% of the pie. The proportionof CCR and RCR new homes sold were 9.4% and 29.1% respectively.

Poor sales volume just a temporary phase

The poor sales came in below market expectations. This could be attributedto developers holding back new launches and buyers re-assessing theiraffordability in the light of the new TDSR framework. With the newframework, banks are also taking much longer to grant in-principle loanapproval. The longer waiting period could have removed some impulsebuying.

However, buyers' appetite for reasonably priced projects at good locations

is still very strong. The latest mass market project Tembusu selling over 200units on the first day of its launch is a testament to that.

Nevertheless, home buyers and investors have turned more cautious andwill be more selective with projects due to the cumulative effect of all theproperty curbs over the past few years. As August is also a traditionalChinese Hungry Ghost month, developers are not in a hurry to launch anyother project. We expect slow sales to continue into August withtransactions coming in at below 1,000 units.

July and August could be just a momentary hiatus. We do expecttransaction volumes to rebound strongly in September and October whennew launches are back in full force. Projects that are located next to MRTstations will still be a draw among buyers and investors. A good number of

highly anticipated projects are slated to be launched in the second half andwe expect fairly good take-up rates for them if they are attractively priced.

Exhibit 1: Best-selling projects

Units

LaunchedUnits Sold

Median

Price

(S$psf)

Vue 8 Residence 463 100 63 1,004

Bartley Ridge 868 0 25 1,216

Jewel @ Buangkok 616 0 24 1,201

Riversails 920 63 18 961

Kingsford .

Hillview Peak 512 0 18 1,432

Project NameTotal

units

In the month of May

Source: URA, OrangeTee Research

Primary Home SalesSales of uncompleted private residential properties in July 2013

OrangeTee Research & ConsultancyEmail: [email protected]:www.orangetee.com

Research and Consultancy

Wong Xian Yang

Senior Research Analyst

Christine Li Minwen

Head
mailto:[email protected]://www.orangetee.com/http://www.orangetee.com/http://www.orangetee.com/http://www.orangetee.com/mailto:[email protected]


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Exhibit 2: Median prices of units sold (in S$psf), by region


Exhibit 3: Change in median prices of units sold (in S$psf), by region


Exhibit 4: Price range of the best-selling projects in the month



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Exhibit 8: Selected Projects with the most number of units sold in July 2013

Project Name Street Name DeveloperProperty

TypeLocality

Total

Number of

Units in

Project

Cumulative

Units

Launched to-

date

Cumulative

Units Sold to-

date

Cumulative

Units

Launched

but Unsold

Units

Launched in

the Month

Units Sold in

the MonthMedian Price

Lowest Price

($psf) # in

the Month

Highest

Price ($psf)

# in the

Month

VUE 8 RESIDENCE PASIR R IS HEIGHTSPublique Realty

(Pasir Ris) Pte Ltd

Non-

LandedOCR 463 100 63 37 100 63 1004 819 1204

BARTLEY RIDGE MOUNT VERNON ROAD

Mount V

Development Pte

Ltd

Non-

LandedRCR 868 868 658 210 0 25 1216 1036 1427

JEWEL @ BUANGKOKBuangkok

Drive/Compassvale Bow

White Haven

Properties Pte

Ltd

Non-

LandedOCR 616 350 302 48 0 24 1201 1035 1405

KINGSFORD .

HILLVIEW PEAKHillview Avenue

Kingsford

Development Pte

Ltd

Non-

LandedOCR 512 512 129 383 0 18 1432 1343 1482

RIVERSAILS UPPER SERANGOONCRESCENT

Benefit

Investments Pte.Ltd.

Non-Landed

OCR 920 871 814 57 63 18 961 729 1041

D'NEST Pasir Ris GroveHong Realty Pte

Ltd

Non-

LandedOCR 912 912 829 83 0 15 963 866 1018

J GATEWAY GATEWAY DRIVE

MCL Land

(Gateway) Pte

Ltd

Non-

LandedOCR 738 738 738 0 0 15 1585 1383 1726

EIGHT RIVERSUITES WHAMPOA EAST

UE Development

(Bendemeer) Pte

Ltd

Strata-

Landed /

Non-

Landed

RCR 862 862 557 305 0 13 1276 991 1529

Q BAY RESIDENCES TAMPINES STREET 86Quarry Bay Pte

Ltd

Non-

Landed

OCR 630 630 527 103 110 13 1071 872 1160

URBAN VISTATANAH MERAH KECHIL

LINK

Bayfront Realty

Pte Ltd

Non-

LandedOCR 582 535 476 59 10 12 1490 1259 1693

J AD E R ES ID ENCES L EW LIAN VALERoxy Residential

Pte Ltd

Non-

LandedOCR 171 120 103 17 0 11 1589 1319 1647

L AU RE L T RE E HI LL VI EW TE RR AC E L eri da Pt e L tdNon-

LandedOCR 70 70 48 22 0 10 1318 1242 1448

LA FIESTA SE NG KAN G SQ UARE

EL Development

(Sengkang) Pte

Ltd

Non-

LandedOCR 810 600 592 8 0 10 1163 1073 1238

RIVERBAY Mar Thoma RoadGreen Bay Pte

Ltd

Non-

LandedRCR 147 63 51 12 0 10 1402 1286 1461

MIDTOWN

RESIDENCESUpper Serangoon Road

Oxley-Lian Beng

Pte Ltd

Non-

LandedOCR 160 160 106 54 0 9 1244 1106 1476


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Primary Sales Jul 2013