Last year, developers launched 7,853 private homes – up 11.3 per cent from 2015.
In the EC segment, 213 units were sold by developers last month, down slightly from the 251 units in November, but an improvement on the 124 units in December 2015. Upcoming executive condo launches include Yio Chu Kang EC, Hundred Palms Residences EC, Inz Residence, Choa Chu Kang EC, Anchorvale Lane EC, while existing ones include The Terrace EC, Brownstone EC, The Vales EC, Parc Life EC , Sol Acres EC, The Visionaire, Bellewoods EC, Signature at Yishun, The Criterion EC and Northwave EC. Hundred Palms Residences details and Hundred Palms EC show flat will be available shortly.
The 57.6 per cent jump in EC sales last year was despite a 26.7 per cent contraction in the number of new ECs launched to 2,749 units. Mr Ong attributed the pick-up in sales to more realistic pricing, which resulted in median prices of new ECs easing about 5 per cent between Q1 2015 and Q4 2016.
SLP International executive director Nicholas Mak is sanguine about buying strength. “Demand for both new private homes and ECs is still there. Buyers are coming round to the view that there is limited benefit in waiting for further price declines at new launches, and those who can afford it would be inclined to enter the market.”
That said, the number of units developers manage to sell this year will be more a function of supply, he added.
According to ERA Realty Network’s data, only two new EC projects totalling around 1,000 units are slated for launch this year – Qingjian Realty’s iNz Residence in Choa Chu Kang Avenue 5 and a project by Hoi Hup in Yio Chu Kang Road. In addition, there are about 3,000 unsold units in EC projects that are already on the market, ERA noted. The agency’s key executive officer Eugene Lim predicts primary-market sales of 2,500 to 3,000 ECs this year.
Ms Li of Cushman & Wakefield, who predicts an increase of up to 10 per cent in the number of private homes that developers will move this year to 8,950 units, said: “Transaction volume could be sustained due to the still relatively benign interest rate environment, good attributes of pipeline projects and ample liquidity in the market.
“There will be some additional demand from foreign buyers, particularly from the mainland Chinese after Hong Kong recently raised the stamp duty rate on non-residents who buy residential properties from 15 per cent to 30 per cent.”