Analysts expect more sales activity in the primary market this year.
Despite the lack of new project launches, developers sold 381 private residential units in January, excluding executive condominiums (ECs), according to latest data from the Urban Redevelopment Authority (URA). This is up 3.8 percent from the 367 units moved in December, and 17.6 percent higher than the 322 units sold in the previous year.
Developers also sold 184 EC units, down 13.6 percent from December, but 17.9 percent higher from last year, indicating more positive sentiments and outlook compared to the previous year.
“January 2017 is better than January 2016. Notwithstanding the lead-up to the Lunar New Year celebration in January, market sentiments and outlook at the onset of 2017 is clearly much more positive than the beginning of 2016, which was marred by a volatile stock market that dampened sentiments,” said Ong Teck Hui, National Director, Research & Consultancy at JLL.
Given the improved sentiments, Ong expects a more active first quarter this year as developers are more confident to launch new projects.
In fact, Desmond Sim, Research Head for Singapore and Southeast Asia at CBRE, expects new sales in February “to be higher with the launch of The Clementi Canopy and possibly Grandeur Park Residences if it is launched soon”.
Mohamed Ismail, CEO of PropNex Realty, said he also expects February “to enjoy a healthy number of transactions, exceeding January’s numbers, along the lines of 700 units. Whereas in March, we can expect more than 1,000 units sold”.
“This is indeed a buyers’ market which home buyers should take advantage of, while interest rates are still low,” noted Ismail, who also expects developers to continue dangling incentives to move unsold units.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
