Private home launches and sales pick up in 2Q2018

By EdgeProp Singapore / EdgeProp | July 27, 2018 6:00 PM SGT
Launches of private homes picked up significantly in the second quarter of 2018 with 2,437 units placed on the market by developers – 164.6% higher than in 1Q2018 and 21.2% higher y-o-y –according to the 2Q2018 statistics released by the Urban Redevelopment Authority (URA) released on July 27.
Rising prices and a more buoyant market led developers to increase the number of launches during the second quarter.
According to Ong Teck Hui, national director of research and consultancy at JLL, launch figures for 3Q2018 could remain healthy as Riverfront Residences, Park Colonial and Stirling Residences have initiated their launches in July and other projects are also gearing up for launch including Daintree Residences and The Tre Ver.
The latest statistics show that developers sold 2,366 private residential units in 2Q2018, a 49.7% increase from 1Q18 but 23.1% less than the same period last year. Nevertheless, it reflects healthy demand which is supply-led. More units could have been sold if there had been more launches during the quarter. The tally for new private homes sold in 1H2018 is 3,947 units, while the full year estimate is 8,000 to 9,000 units, which is roughly 15% to 25% lower than in 2017.
Sales of private homes in the secondary market was also robust, registering 4,820 units in 2Q2018 which is a 28.6% increase from 1Q2018 and 25.9% higher y-o-y. It is the highest quarterly secondary market sales volume since 2Q2011, when 5,348 units were sold.
“As buying opportunities in the primary market were not picking up fast enough, many buyers resorted to the secondary market, pushing up its transaction volume. Sales volume in the secondary market could ease, due to a mismatch in price expectations between sellers and buyers, as the latter become more hesitant after the recent cooling measures,” says JLL’s Ong.
Strong price momentum in 2Q18
Source: URA