Pent-up demand after a prolonged drought?

SINGAPORE: Sales of private homes last month more than doubled in March, rising by 178 per cent from the previous month as developers launched more units.

Excluding executive condominiums (ECs), developers sold 843 new units in March, up from the 303 units sold the previous month, data from the Urban Redevelopment Authority showed on Friday (Apr 15). Including ECs, 1,328 new units were sold last month, up from 433 units the previous month. Upcoming executive condo include Treasure CrestNorthwave EC, Wandervale EC and Parc Life EC  while existing ones include The Terrace EC, Brownstone EC, The Visionaire EC, Waterwoods EC, Signature at Yishun, Skypark Residences, The Vales EC, The Criterion EC, Bellewaters EC, Bellewoods EC.

The rise in sales came as developers launched more units, with 682 non-EC units launched in March, up from the 209 units launched in the previous month.

Christine Li, research director at Cushman & Wakefield, said that the rebound in sales did not come as a surprise: “Firstly, there was some pent-up demand after the prolonged drought since last December. On average, developers only sold 335 units over the last three months (December-February), below the monthly average of 637 units recorded in 2015.

“Secondly, the two projects that sold well had good product and location attributes,” she said. “Despite being a prime residential project, Cairnhill Nine defied market gravity and outperformed market expectation due to its attractive pricing and small quantum.”

The Wisteria mixed-use development in Yishun also did well with 125 units sold, she said.

Looking ahead, Ismail Gafoor, CEO of PropNex Realty, expects strong sales volume in the second quarter with the upcoming launches of GEM Residences, Sturdee Residences and Stars of Kovan, which he said will definitely spur buying demand.

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