New home sales down 28.1% in Jan, but expected to rise with more new launches in the coming months

Private residential units sold by developers excluding Executive Condominiums (ECs) fell 28.1% month-on-month (m-o-m), from 602 units last December to 433 units in January, according to URA data released on Feb 15.
Meanwhile, 498 new private homes were launched in January, nearly four times more than the 101 units placed on the market in December 2018 and about twice that launched in January last year, says Ong Teck Hui, JLL senior director of research & consultancy.
Crowd on the launch weekend of Fourth Avenue Residences on Jan 19-20 (Credit: Allgreen Properties)
The three new projects launched last month -- Fourth Avenue Residences, RV Altitude and Fyve Derbyshire-- were all located in the Core Central Region (CCR). These three projects also accounted for almost 25% of January’s sales, notes Lee Sze Teck, head of research at Huttons Asia.
Top Selling Projects in January 2019
Project Name
Street Name
Units Sold
Median Price ($psf)*
% sold to date**
Fourth Avenue Residences
Fourth Avenue
74
2,412
16%
Affinity At Serangoon
Serangoon North Avenue 1
54
1,496
34%
Parc Esta
Sims Avenue
32
1,745
30%
Stirling Residences
Stirling Road
22
1,761
41%
Parc Botannia
Fernvale Street
21
1,384
65%
RV Altitude
River Valley Road
19
2,858
14%
Riverfront Residences
Hougang Avenue 7
18
1,321
58%
The Tre Ver
Potong Pasir Avenue 1
18
1,615
36%
Whistler Grand
West Coast Vale
18
1,368
35%
Source: Colliers International, URA
“The fact that the three new projects were launched in Jan reflects developers’ confidence in launching units in the upper price segment where the pool of buyers is more limited,” adds JLL’s Ong. “The stable market in Jan could be a prelude to healthy launches and sales in the coming months.”
The healthy demand for these new luxury homes bodes well for the luxury market as more than 4,000 new homes could be launch-ready this year, notes Christine Sun, head of research and consultancy at OrangeTee and Tie. “There were more Singaporeans buying luxury homes last month,” she adds. “The increased number of luxury homes sold indicate that buyers are generally still upbeat about the market here given that household incomes have risen across the board last year and our gross domestic product (GDP) is still positive.”
In terms of pricing, all the new launches in Jan probably set benchmark prices in their respective localities. For example, Fourth Avenue Residences set the benchmark price of $2,412 psf for a 99-year leasehold project in the...