With sales volumes and prices falling in October, many developers are delaying launching new projects and are concentrating on selling units already listed, say market commentators
Singapore private new home sales by developers have fallen by almost one third in the year to October, declining 30.7% year-on-year, the latest figures show.
But October’s figures were 18% higher than September, although half came from just one development, according to new figures from the Urban Redevelopment Authority (URA).
Developers sold 855 units, including Executive Condominiums (ECs) in October, up from 707 units in September and, excluding ECs, 765 new units were sold in October, up from 648 the previous month.
But most of the properties – 330 – were sold at the Marina One Residences – the only new project launched in October – fetching a median price of S$2,228 per square foot.
Private residential property prices fell 0.7% in the third quarter, the fourth quarter running to see a decline as the government’s market cooling measures bite further into domestic and overseas sales. Just days ago, OPP Connect reported how battered Singapore developers were looking to overseas markets for new opportunities.
More units – 649 – were launched for sale in October, says the URA, up from 514 in September and in total there are 19,270 unsold units on sale.
The established Coco Palms development sold 34 units at a median price of S$1,039 per square foot and Lakeville sold just two less at a median price of S$1,340 per square foot.
Eugene Lim, Key Executive Officer of Singapore’s largest agent, ERA Realty Network, told Channel News Asia, “The loan curbs and ABSD (Additional Buyer’s Stamp Duty) framework have somewhat dried up buying momentum in the market and developers would prefer to focus on clearing existing stock rather than introduce more new stock into the market.”
ERA Realty Network says a group of 60 sales staff from JLL’s residential department has joined the firm.
Heading the group is Good Class Bungalows sales expert, Henry Lim, who has been in the industry for 20 years and has concluded deals with an estimated total sales value of about $1billion.
Jack Chua, Chief Executive Officer of ERA Realty Network says, “We are elated to welcome Henry’s team and are confident that with our strong network and support systems in the residential segment, the additional talents will serve to take the company to another level.”
ERA Realty Network topped Singapore Business Review’s second annual ranking of the largest real estate agencies based on the city’s number of real estate salespersons.
The data obtained at September from the Council for Estate Agencies showed that ERA’s total of 5,911 salespersons was up by 16% and is has now passed 6,000.
Henry Lim says, “As the largest real estate agency in Singapore, it will allow us to build upon ERA’s extensive network and allow us to achieve great things together. We are very pleased to be joining ERA Realty.”
By Adrian Bishop, Editor, OPP Connect