Following April’s 55 percent rebound in private new home sales, the boss of Singapore real estate agency PropNex has predicted improving conditions ahead.
Mohd. Ismail, Chief Executive Officer (pictured), said: “We expect new sales volume to improve in the coming months—on the back of more new launches and fairly positive market interest.”
Only two new projects were launched during April, indicating the current market conditions—especially following the imposition of TDSR. Now that the TDSR has been in play for ten months, the dust has somewhat settled and buying volume is likely to improve in tandem with the anticipated launches of attractive and well-located residential projects, according to PropNex.
Ismail added: "With tightened loan policies, buyers will remain more discerning and developers have to respond accordingly or risk having a poor take-up rate. Developers need to be more sensitive to the market where value for money is key – with price being a key consideration for most buyers.”
According to PropNex Singapore developers are likely to take on a cautious front and time their launches, keeping in mind that it’s currently a buyers’ market and there is general expectation of a price correction.
Moving forward, several highly-anticipated mid- to large-scale projects by established developers will also be launching in second quarter and beyond, including Waterfront @ Faber in Clementi by World Class Land, CoCo Palms in Pasir Ris by CDL, Highline Residences at Kim Tian Road by Keppel Land, Marina One Residences by M+S, Trilive Condominium at Tampines Road by Roxy-Pacific and Commonwealth Towers by CDL and Hong Leong Group.
“With the TDSR still in force, it is crucial for developers to price their projects optimally in order to achieve strong sales. Second quarter new sales volume is expected to improve from the first quarter – to between 2,200 and 2,500 units – as market interest gradually returns with anticipation of developers’ attractive offerings for their new launches,” concluded Ismail.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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