Mr Desmond Sim (沈振伦), Head of Research, Southeast Asia, CBRE.
Similar to June, total take-up for July 2019 exceeded the number of units launched. 1,178 units were sold from new launches and existing projects. Out of a total of 911 units launched, 441 were from five new projects (excluding ECs).
One Pearl Bank, which was newly launched in July 2019, was the top selling project with 197 units sold. In light of higher per square foot prices, it was not surprising that smaller units was the main driver – median unit size for those sold at One Pearl Bank was 570 sq. ft. In addition, projects from previous launches continue to do well with Treasure at Tampines and The Florence Residences selling another 119 units and 112 units, respectively.
Looking at year-to-date 2019 figures, a total of 5,526 units have been sold, out of 6,408 units launched.
In the EC segment, Piermont Grand, the first EC project to launch this year was well-received. 378 units were sold out of 820 that were launched within the first month. The healthy response can be attributable to the pent-up demand in the EC market, strong location attributes and the reputation of the developer. In addition, deferred payments were offered as an added incentive to attract buyers.
The healthy absorption of new homes is testament to market resilience. Sales momentum is likely to maintain at around 7,000- 8,000 units, driven by the launch of projects that were secured during the collective sales fever. CBRE Research expects downward pressure to come only in the mid to longer term – when the impact of the weaker macroeconomic environment settles in, and when developers are compelled to reduce prices as their sell-by deadlines approach.
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