The URA monthly sales volume jumped 16 percent month-on¬-month to 1,058 units in October, pointing to a sooner-than-expected recovery in sales after the state intervention in August, according to Jones Lang LaSalle (JLL).
“While we had expected the latest measures, which are restrictive policies that deter speculators’ entry into the market, to have a longer-term effect, the numbers are showing that the adjustment period to the stricter regulatory environment may be shortening for the buyers. The high liquidity that is circulating around has certainly fuelled this growth. The sales volume in October this year is at least 30 percent higher than those corresponding months since 2007,” said Dr. Chua Yang Liang, Head of Research South East Asia at JLL.
The recent measures had a marginal effect on the Core Central Region (CCR), as the profile of buyers suggests that they are less adversely affected by the buying restrictions, said JLL. The CCR also seemed to be a destination for excess liquidity, as the sales volume grew almost fourfold month-on-month to 335 units in October.
The Outside Central Region (OCR), on the other hand, saw a 25 percent month-on-month decline in sales volume to 452 units. The take-up rate in the region maintained at 88 percent, as launches also dropped by 24 percent month-on-month to 513 units. Meanwhile, the Rest of Central Region (RCR) sustained its sales activity, with a total of 271 units sold, only 45 units more than in September.
The latest URA numbers take the total year-to-date sales volume to 13,365 units, only 4 percent below the volume reached during the same period last year. “Given the latest sales results that have exceeded expectations once again, we revised our projection for the full year’s sales volume to reach 14,500 to 15,000 units and prices are likely to remain flat,” added Dr. Chua.
Meanwhile, Adam Tan, Corporate Communications Manager at PropNex Realty, warned against thinking that the increase in sales would continue for the rest of the year.
“The main reason we saw such a high sales figure for October is due to the launch of two Executive Condominiums (ECs): Esparina Residences, which sold a whopping 425 units, and The Canopy, which sold 104 units.”
“With the reintroduction of ECs after a five-year hiatus, demand was expected to be high as the sandwich class of those whose household incomes exceeded HDB’s $8,000 ceiling shrunk from the increasingly expensive mass market projects and flocked to the more affordable ECs,” added Mr. Tan.