After going through huge pressure from the pipelined projects, property developers recently pushed out 9 new private home projects in the month of April. However, analysis reveals that most of the sale in the last month was observed from those which were launched earlier.
As per the stats released by the Urban Redevelopment Authority (URA), almost 735 units were sold in April; however, now the sale improves by almost 30% as the recent target they achieved is 952 units; but this percentage is still 15% lesser as compared to the 1122 units that were booked in the month of May by the previous year.
Out of the total sale stats obtained from the last month, 70.2% of these belong to previous launches. It means that the units that were pending to be sold are still a great opportunity for the buyers in the market. As per URA’s data, 1066 units were launched by the previous year, and 3491 unsold units were launched during the first quarter of this year.
During the initial launch of Woodleigh Residences in the month of November last year, the price per square foot was estimated to be $2000; however, it was recently reduced to $1823 psf, and this fall in price brought it to the top in the list of top seller properties by the last month.
Even with the tighter margins, this move helped in a constructive way to sell 74 units in the month of May as compared to only 29 units at the time of initial launch. It clearly means that low take-up rates can motivate developers to set the price more effectively in the market.
During first five months of the previous year, developers were able to sell only 2.6% of the private homes out of 3,436 units; but the scenario is completely different in this year as developers sold around 3,525 new private homes in the same time period.
Mr. Ong recently said that as the pressure of substantial pipeline in the market is increasing day by day, developers are advised to launch their projects fast to the interested and secure buyers.
Head of research at CBRE also said that developers must take up the projects at the current levels as soon as possible because market scenario says that competitors may launch pending projects at a low price during collective sale cycle.
It is observed that the nine recent private home launches in the market lead to a total sale of 29.8% last month. These projects include freehold condo developments; Parc Komo in Changi and Amber Park in the East Coast. There are so many benefits of investing in new launch, Amber Park. This is a big development that come with large recreational space and modern project design. This place is also within close vicinity to the most popular MRT stations in the city.
Also, the projects located in the central region of the city are also performing well in the market. The overall sale for those projects was recorded to be 43.7% in the month of April last year; however, it increased to 51.3% by this year.
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