Home demand rides the wave of new launches

Urban Redevelopment Authority (URA) reported a total of 2,393 private homes - excluding executive condominiums (ECs) - being sold in the month of March, a mere 1 per cent fall from February. Still, this number was 73 per cent higher than in the same period a year ago, reflecting strong underlying demand for new private homes.

This brings the total number of private homes (excluding ECs) sold to 6,682 in the first three months of 2012 - a record for quarterly sales since 1Q 1996 when quarterly data was first compiled and around 41 per cent of the total volume sold in 2011.

New launches have been driving demand, observers say. An eye-popping 2,582 units (excluding ECs) were launched in March.

Sales of ECs also remained at high levels, with 639 units sold in March, slightly lower than the 725 units in the month before, but still more than four times the volume transacted in the same period last year.

Including ECs, the total number of new private homes in March reached 3,032 units.

Units were snapped up in both new launches and projects launched earlier.

Among the new kids on the block, top-sellers included Ripple Bay (326 units sold at a median price of $883 psf), Palm Isles (102 units sold at a median price of $860 psf), Seletar Park Residence (98 units sold at a median price of $1,162 psf) and East Village (83 units sold at a median price of $1,309 psf).

Among projects launched earlier, The Minton (118 units sold), Riversound Residence (115 units sold), Archipelago (93 units sold) and Bartley Residences (86 units sold) saw strong demand.

Though no new ECs were launched in March, buyers - especially upgraders - continued to buy, with The Tampines Trilliant and Twin Waterfalls transacting 369 units and 153 units respectively.

The bulk of properties sold in March remained in the $1,000 to $1,500 psf range, similar to the month before.

The mass-market outside central region (OCR) continued to dominate demand, with a total of 1,825 OCR units (excluding ECs) sold, just seven units less than the 1,832 homes transacted in February.

Source: Business Times – 17 April 2012