By Mr Desmond Sim, Head of Research, Southeast Asia
In March 2019, 1,812 units were launched and 1,054 units were sold. This brings the total number of launched and sold units in the first quarter of 2019 to 3,089 and 1,946 units, respectively. In comparison, over the same period last year when market sentiments were healthier, 1,581 units were sold, outstripping the 1,068 units launched.
Clearly, demand for mass market projects remain driven by quantum. Mass market projects dominated the 10 new launches in March, led by two major projects Treasure at Tampines (289 units sold, 59.0% take-up) and Florence Residences (77 units sold, 38.5% take-up). Palatable price quantums were a key draw; 91.8% of units at these two projects were sold at less than S$1.5 million while 98.1% were sold at less than $2 million.
In the CCR, the allure of reputable developers provided the quality assurance that most buyers seek for their prime residential investment. Prices in the CCR were propped up by Boulevard 88 which did well with 26 units sold (74.3% take-up) at a median price of S$3,613 psf.
In the EC segment, 8 units were sold, out of which 5 were from Northwave in Woodlands. All eyes will be on the next highly anticipated EC launch at Sumang Walk, which is likely to be launched soon.
Going forward, developers might slow down launches to give the market a breather to allow inventory to clear from existing launches. Launch pipelines could also ease going forward as the major projects (> 1,000 units) have already been launched. On the demand side, buyers may adopt a “wait-and-see” stance, in anticipation of prices declining in the coming quarters.
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