Mega-projects lead the way in March new home sales

Newly launched mass-market developments dominated the 10 new launches in March, and this segment was led by two major projects, according to URA’s latest statistics for new private home sales in March.
The 2,203-unit Treasure at Tampines sold 289 units with a 59% take-up rate, while the 1,140-unit The Florence Residences sold 77 units that reflects a 38.5% take-up rate. Meanwhile, The Tre Ver, which was launched last August, sold 131 units during the month. Together, these three projects accounted for 47% of March’s private residential sales.
“Palatable price quantums were a key draw; 91.8% of units sold at [Treasure at Tampines and The Florence Residences] were sold at less than $1.5 million, while 98.1% were sold at less than $2 million,” says Desmond Sim, head of research for CBRE Southeast Asia.
Table: JLL, URA
“Despite the ample supply of new launches, buyers continued to dip into previously launched projects - in particular The Tre Ver,” says Tricia Song, head of research for Singapore at Colliers International. “The uptick could be due to potential buyers who were deflected from nearby Park Colonial which is now 72% sold and has started to raise selling prices,” she adds.
The median price at Park Colonial has climbed from $1,756 psf during its launch in July 2018 to $1,828 psf last month.
Not all good news
In total, developers sold 1,054 private residential units (excluding executive condominiums) in March, out of 1,812 units launched for sale. This is an m-o-m increase of 131.6%, and a y-o-y increase of 47.2%.
“The overall sales pace still looks encouraging and relatively spread out, with 12 projects selling more than 20 units in March 2019. This compares favourably with March 2014 after the total debt servicing ratio was implemented, when only five projects sold more than 20 units,” says Christine Li, senior director of research at Cushman & Wakefield (C&W).