Large crowds at the Stars of Kovan showflat last month. (Photo: Cheung Kong Property)
UPDATED: Sales of new private homes in Singapore, excluding executive condominiums (ECs), rose by about 40 percent to 1,056 units in May from the previous month, revealed data released by the Urban Redevelopment Authority (URA) on Wednesday, 15 June.
This is the highest monthly sales volume since July 2015 when 1,655 units were sold, said JLL.The property consultancy noted that developer sales usually peak around April and May, just before the June holiday lull.
According to analysts, the increase in sales was largely due to two new projects, Gem Residences in Toa Payoh and Stars of Kovan.
“They contributed the lion’s share (or 36 percent) of all new launches in the month and certainly helped to prop up the sales volume in May,” said Mohamed Ismail, CEO of PropNex Realty.
Property developers launched 1,345 private units last month, up almost 50 percent from April.
The 578-unit Gem Residences sold 312 units at a median price of $1,431 psf. Jointly developed by Gamuda Berhad, Evia Real Estate and Maxdin, this is the first private condo to launch in Toa Payoh in seven years.
“About 89 percent of units sold in the development are one- and two-bedroom units, with the majority priced within an affordable quantum of around $1 million and below per unit,” said JLL.
Over at Stars of Kovan, Hong Kong developer Cheung Kong Property sold 76 of the project’s 395 residential units at a median price of $1,414 psf. Located at the junction of Upper Serangoon Road and Tampines Road, the development also features 46 British-inspired commercial shops on the ground floor.
Separately, there were no new EC projects launched in May, said JLL. As such, EC sales dropped by almost 40 percent to 332 units, from the 547 units sold in the previous month.
Meanwhile, luxury home sales have improved in recent weeks due to the strong performance of OUE Twin Peaks. “Prices have reached a level whereby it is highly attractive to potential buyers,” said Ismail.
He expects developer sales to hover at an average of 500 to 700 units each month for the rest of the year, while total sales volume in 2016 could reach 7,000 to 8,000 units.
“In Q3, the upcoming launches of Northwave and Treasure Crest ECs, and Lake Grande, will boost volume as developers look to step up their launch activities before the Hungry Ghost Festival hits in August,” he said.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
