Home sales volumes rose 91% from the previous year in October to 928 units.
This was a fall of 27% compared to Sept 2018 despite three new major project launches.
Year to date volumes are up 13% compared to the same period last year.
Year to date volumes are 8,397 units.
The month’s new launches had low initial sale rates.
GuocoLand’ 219-unit Midtown Bay sold 50 units at S$2,900 psf (take-up rate: 22%), Hong Leong’s 564-unit Midwood, condo which launched 50 units, sold 24 units at S$1,650 psf (take-up rate: 4%) and Allgreen’s 285-unit Royalgreen sold 42 units at S$2,700 psf (take-up rate: 15%).
October sales volumes comprised mainly sales in existing projects – MCL Land’s 1,399-unit Parc Esta sold the most units (92 units @ S$1,600 psf), followed by Sim Lian’s Treasure at Tampines (sold 88 units @S$1,370 psf).
Spillover from this month’s new launches and more upcoming launches in November should improve sales volumes.
Sales volumes are expected to improve as sales from October launches spill over to November and more projects are scheduled to be launched.
City Developments and CapitaLand jointly launched 680-unit Sengkang Grand Residences on Nov 2nd, and have since sold 232 units at an ASP of ~S$1.7k psf (take-up rate: 34%).
EL Development’s Nov launch of 340-unit Pullman Residences saw 12 units sold at S$3,000 psf, and United Engineers is launching 460-unit Dairy Farm Residences in the coming weeks.
Property developers and agencies are giving feedback that home buyer sentiment has improved, with several citing healthy take up rates for some of the recently launched projects as an indicator of healthy underlying demand.
New launch prices are edging up owing to higher developer land costs, and sales volumes growing slowly but steadily into next year.
Home sales are currently outpacing the rate of developers’ landbank replenishment and unsold inventory levels are continuing to fall.
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