December sales highest in six years

By EdgeProp | January 18, 2019 3:45 PM SGT
The crowd at the balloting of Parc Esta, which was launched in November and continued to be the top-seller in December (Credit: MCL Land)
Private new home sales dropped off sharply to 602 units (excluding executive condos) in December 2018, down 39.7% from the previous month. Still, the data was “quite encouraging” in the absence of new project launches and given the typical year-end lull during the festive period, says Tricia Song, Colliers International head of research for Singapore. It was the highest sales recorded in the month of December since 2012, when 1,410 units were sold, she says.
Only 101 new private homes from existing launches were put up for sale in December, a 92.5% drop from the previous month and a 56.3% fall y-o-y. It was the lowest number of new private homes launched since September 2017, says Ong Teck Hui, JLL senior director of research and consultancy.
For the whole of 2018, developers launched 8,773 private residential units compared to 6,020 in 2017, says JLL.
If returned units in 4Q2018 are taken into consideration, the year could end with 8,706 units sold instead of 9,264 units, reckons Colliers’ Song. This would mean new home sales in 2018 would have contracted further by 17.6% instead of 12.3% from 10,566 units in 2017.
Increased pace of new launches
The momentum of new launches was higher in 2H2018 — accounting for 5,415 units (61%) — compared to 1H2018. “The increased momentum of launches was partly due to the prospect of a large launch supply entering the market in 2019. It led developers to launch their projects and secure sales before the year ended,” notes JLL’s Ong. “We can expect the launch momentum to carry over into 2019 when 10,000 to 12,000 new private homes could be launched.”
Projects launched in November continued to be popular in December, hence the two top-selling projects last month were Parc Esta (160 units sold at a median price...