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Due to a price increase of apartments and condominiums in Singapore's city center and and city fringe, the private property price index has risen by 1.3% compared to the previous quarter of a decrease in 0.7%. This happened in the first half of 2019.

There was an increase in prices of non-landed private residential properties by 1.5% in the Core Central Region (CCR) compared to the 3% fall in the previous quarter. According to OrangeTee & Tie's head of research and consultancy Christine Sun analysis of Realis data, 69 units were sold above $3,000 psf last quarter as opposed to the 45 units sold in the previous quarter.

As for the Rest of Central Region (RCR), prices rose by 3 per cent after registering a decline of 0.7 per cent in the previous quarter.
There were 367 new homes in RCR that were sold at $2,000 per square foot (psf) and above in the second quarter of 2019. In comparison, 31 units were sold in the first quarter of 2019.

Prices in the Outside Central Region (OCR) also increased by 0.5 per cent, following the last quarter's 0.2 per cent increase.

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SINGAPORE - Price increases in apartments and condos in Singapore's city centre and city fringe helped lift the private property price index by 1.3 per cent in the second quarter of 2019 according to a Monday (July 1) flash estimate.

This comes after a 0.7 per cent decrease in the previous quarter. Based on the flash estimate on Monday, prices have risen 0.6 per cent year to date.

Prices of non-landed private residential properties rose by 1.5 per cent in the Core Central Region (CCR) compared to the 3 per cent fall in the previous quarter. As for the Rest of Central Region (RCR), prices rose by 3 per cent after registering a decline of 0.7 per cent in the previous quarter.

Prices in the Outside Central Region (OCR) increased by 0.5 per cent, following the last quarter's 0.2 per cent increase.

OrangeTee & Tie's head of research and consultancy Christine Sun said: "This uptrend is within expectation as new homes sales currently form the lion's share of the property market and many new projects are selling at new benchmark prices for their locations in recent months."

According to her analysis of Realis data, 367 new homes in RCR were sold at $2,000 per square foot (psf) and above in the second quarter of 2019. In comparison, 31 units were sold in the first quarter of 2019.

As for CCR, 69 units were sold above $3,000 psf last quarter as opposed to the 45 units sold in the previous quarter.

CBRE's head of research for Singapore and South-east Asia Desmond Sim did a caveat analysis comparing the first half of this year and the first half of last year and pointed out that new home sales were fairly stable at 3,874 units in H1 2019, versus 3,688 units in H1 2018, while there was a significant reduction in resale volume from 7,146 units to 3,266 units.

JLL's senior director of research and consultancy Ong Teck Hui said: "The key observation from the second quarter 2019 flash estimates is the firm demand for new high-end homes in CCR as well as attractive locations in RCR in spite of the cooling measures, which do not seem to deter buyers who are keen on such properties. This should augur well for potential launches with such attributes as there is a fair chance of them achieving better sales take-up."

These estimates were compiled based on prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-June.

They will be updated on July 26.

The URA said that past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small, and the public therefore is advised to interpret the flash estimates with caution.

Analysts were split on price direction moving forward. CBRE's Mr Sim believes the price index upturn is a mere blip, and will remain "relatively stable with downward pressure coming only in the mid to long term" because of uncertain global economic forecasts and rising inventory from yet-unlaunched projects.

Meanwhile, OrangeTee & Tie believes in a price increase of between 1 and 3 per cent for the whole of this year, and Morgan Stanley's analyst Wilson Ng expects price growth to be "sustained".

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Private property price index up 1.3% in Q2: URA flash estimate

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SINGAPORE - Price increases in apartments and condos in Singapore's city centre and city fringe helped lift the private property price index by 1.3 per cent in the second quarter of 2019 according to a Monday (July 1) flash estimate.. Read more at straitstimes.com.

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The article states "JLL's senior director of research and consultancy Ong Teck Hui said: "The key observation from the second quarter 2019 flash estimates is the firm demand for new high-end homes in CCR as well as attractive locations in RCR in spite of the cooling measures, which do not seem to deter buyers who are keen on such properties."

This suggests that there is high demand for such properties as buyers are not intimidated by the prices are looking out for such properties to acquire.
The non-price determinants of demand in play is taste and preferences as such properties are highly wanted by buyers which leads to a higher demand in them.

As such, comparing the first half of this year and the first half of last year and pointed out that there was an increase in new home sales and were fairly stable at 3,874 units in H1 2019, versus 3,688 units in H1 2018,

However, there is a decrease in the resale volume from 7146 units to 3266 units from the first half of 2018 to the first half of 2019 as buyers are more keen on buying new houses.

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The article states "JLL's senior director of research and consultancy Ong Teck Hui said: The key observation from the second quarter 2019 flash estimates is the firms' demand for new high-end homes in CCR as well as attractive locations in RCR in spite of the cooling measures, which do not seem to deter buyers who are keen on such properties."

This suggests that the demand of new high-end homes in CCR as well as attractive locations in RCR are price inelastic as buyers are not afraid of the high prices labelled on these properties. They are willing to pay for them.

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Demand for new houses

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1. You guys are probably still in the exploratory stage, as you need to decide soon which good/service your project will focus on as I see butter and margarine, Honestbee delivery services and private housing on your wall. You would need to select one good/service. Please refer to the project instructions in MeL.
2. Please list the names of all group members in your header.

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New private home sales jump 47% in March as developers roll out multiple projects. The article states "While there was keen interest among well-heeled buyers in the ultra-luxurious segment, as seen in Boulevard 88, the majority of buyers remain price sensitive, with 79 per cent buying homes priced at S$1.5 million and below last month." This suggests that even though buyers are willing to buy private houses, the houses that they buy are also largely dependent by its price. Therefore, this means that the demand of the private houses are price elastic as if the prices were to drop, there would be a bigger increase in sales of these houses.

The article also states that "despite last July's cooling measures and a challenging market, projects that are more realistically priced and affordable are likely to sell better" This supports the conclusion that the demand of private houses are price elastic as Mr Ong Teck Hui, senior director of research and consultancy at JLL reiterates that private houses with prices that are more within buyers' budgets will be likely to sell better.

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SINGAPORE: Sales of new private homes in Singapore surged 47.2 per cent year-on-year in March as developers rolled out multiple projects following the seasonally slow Chinese New Year festive period, leaving buyers "spoilt for choice".

Developers sold 1,054 units, excluding executive condominiums, in March compared with the 716 homes sold in the same month last year, data from the Urban Redevelopment Authority (URA) showed on Monday (Apr 15).

March's sales were also more than twice the 455 units sold in February.

"With the passing of the festive month of February, developers were eager to resume launches which led to 10 new private residential projects and 1,812 units being launched for sale in March," noted real estate firm JLL.

This compares with the 614 units launched in March last year and the 596 launched in February.
THE LUX FACTOR
With more projects being rolled out by developers, buyers remain spoilt for choice, said Mr Eugene Lim, key executive officer at ERA Realty Network.

Sentiment proved to be positive for the ultra luxurious home segment last month.

Two of the 10 projects - 35 Gilstead and Boulevard 88 - launched last month were in the Core Central Region, where units went for a median price of S$2,549 and S$3,613 psf, respectively.

Additionally, 25 new private homes sold last month were above S$5 million, the highest number recorded for a single month since December 2013, noted Ms Christine Sun, head of research and consultancy at OrangeTree.

Of the 25 units, 20 were from Boulevard 88 and five were from Marina One Residences.
BUYERS REMAIN PRICE SENSITIVE
The most expensive unit sold in March was a 528 sq m unit at Boulevard 88, which was bought at S$28 million. At S$4,927 per sq ft, this was also the highest per square foot price for a new sales unit since June 2013, said Ms Sun.

While there was keen interest among well-heeled buyers in the ultra-luxurious segment, as seen in Boulevard 88, the majority of buyers remain price sensitive, with 79 per cent buying homes priced at S$1.5 million and below last month, said Mr Lim.

In the other segments, four projects were launched each in the Rest of Central Region and Outside of Central Region.

The key highlights in the Outside of Central Region were mega projects Treasure at Tampines (2,203 units) and The Florence Residences (1,410 units), which made up two of the top five selling projects last month.

Mr Ong Teck Hui, senior director of research and consultancy at JLL, however, cautioned that the surge in launches in March might be more than what the market can absorb.

"Developers were eager to resume launches after the festive month but the surge in launches is very much more than what the market can absorb. While it resulted in 1,054 units sold, the overall take-up rate of 58.2 per cent reflects the mismatch between supply and demand," he said.

He added that despite last July's cooling measures and a challenging market, projects that are more realistically priced and affordable are likely to sell better.

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New private home sales jump 47% in March as developers roll out multiple projects

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(Updated: ) Share on Facebook Share on Twitter Share via E-Mail SINGAPORE: Sales of new private homes in Singapore surged 47.2 per cent year-on-year in March as developers rolled out multiple projects following the seasonally slow Chinese New Year festive period, leaving buyers "spoilt for choice".

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The sales of private houses fell by 30% in march which was originally 1054 to 735 in april causing big pullbacks in launches of private houses.
The demand of houses has fallen which caused the sales of houses to have such a drastic change. In the current society, there are more BTO'S which are build specifically to cater for Singapore's increasing population which lowers the demand for private houses. As Singapore grows as a country, the cost of living increases and it becomes increasingly harder for citizens to afford houses. As such more middle class Singaporean's will resort to staying in HDB's and less in private houses or condominiums.

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SINGAPORE: Sales of private homes by developers fell 30.2 per cent in April from the previous month, following a sharp drop in the number of units launched.

Excluding executive condominiums, developers in Singapore sold 735 units last month compared to the 1,054 units sold in March, according to data released by the Urban Redevelopment Authority (URA) on Wednesday (May 15).

The number of units launched fell sharply by 75.5 per cent, with 444 units in April compared to the 1,812 launched the previous month.

On a year-on-year basis, home sales went up marginally by 0.3 per cent.
"ENCOURAGING" SALES AT EXISTING LAUNCHES
There were only three new launches in April - Mayfair Modern, Coastline Residences and Wilshire Residences - all mid- to small-sized projects.

Analysts noted that most transactions last month were from existing launches such as top-selling projects The Tre Ver in Potong Pasir and Parc Botannia in Sengkang.

Despite fewer new launches, observers said sales remain encouraging.

"Sales performance has been encouraging at many existing launches, given that the cooling measures are still in place and a number of projects have been launched in recent months," said Ms Christine Sun, head of research and consultancy at OrangeTee.

"Some large-sized projects have already sold more than 40 per cent of their entire development within a 12-month launch period from May 2018 to April 2019," she added, citing projects like Mayfair Gardens and The Tre Ver.

"The good sales performance across many projects indicate that buyer demand is still strong, and that projects with attributes like good locality, distinctive designs, attractive pricing and being developed by reputed developers, will continue to see healthy demand."

Sharing that sentiment, CEO of PropNex Realty Ismail Gafoor said private new home sales have "maintained resiliency".

"Buyers are foreseeing that the subsequent new project launches might not be any lower, as developers have previously committed to high land bid prices," he said. "Hence, buyers and investors are gravitating towards projects that are rightly priced."

With at least three projects launched in the first week of May and potentially more in the pipeline, Colliers International expects takeup to remain "relatively healthy" in the coming months.

Prices could also stabilise in the second half of the year.

"We estimate that overall private home prices could stabilise in the second half of 2019, and rise by 1 per cent for the full year 2019," said Ms.Tricia Song, Colliers International's head of research for Singapore.

"Supporting factors that could hold up prices in the coming quarters include - halt in interest rate increases, continued benign economic growth and en bloc beneficiaries buying replacement homes."

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New private home sales fall 30% in April from March amid sharp drop in launches

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SINGAPORE: Sales of private homes by developers fell 30.2 per cent in April from the previous month, following a sharp drop in the number of units launched. Excluding executive condominiums, developers in Singapore sold 735 units last month compared to the 1,054 units sold in March, according to data released by the Urban Redevelopment Authority (URA) on Wednesday (May 15).