Desmond Sim, Head, CBRE Research, Singapore and South East Asia:
“Flight to value seems to be the key driver of demand. In months with no new launches, we observed healthy take up of units that were previously launched. During this month, two new projects – Forest Woods and The Alps Residences - were launched and these saw strong demand as well.
October’s sales of 1,252 units has helped to lift the total sales year to date. With another two new projects launched in November, Queens Peak and Parc Riviera, CBRE has revised upwards the sales estimates for the whole of 2016 to be in the region 8,000 units, more than the 7,440 sold last year and 7,316 in 2014.
Similarly,
EC projects have also turned in a better performance year to date
although there have been no new launches for them since July. It is possible
that the some of the potential buyers of private residential markets have opted
for ECs instead. A total of 3,553 ECs have been sold in the first 10
months of 2016, 39% more than the 2,550 units sold in 2015. Should there
be a new EC project launch before the end of the year, EC sales in 2016 could
number more than 4,000 units.
It
is notable that both the private home and EC markets have seen increased sales
this year despite fewer projects being launched. Buyers have been motivated by
value buys in terms of competitive pricing and palatable quantums, as smaller
units seem to be gaining most traction. Some buyers are also taking advantage
of the current market situation to upgrade.
All eyes are now on how the government might respond to the depleting number of unsold new homes through the next GLS lineup of sites for H1 2017.”
Disclaimer:
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
