Everything you need to know about Singapore’s robust residential transactions in Q1
New launches increased 18.1% to 3,716 units, driving healthy sales figures.
In a recent report, Savills reports that Singapore developers capitalised on the momentum that powered market sentiment last year and carried over this to their launches at the start of this year. In Q1/2021, developers launched a total of 3,716 private residential units for sale, 18.1% higher than the 3,147 units launched in the previous quarter.
According to Savills, compared to the same period a year ago, the increase of 77.5% was much larger. The increase in the number of launched units was largely in January 2021, about 2,600 units, the highest since the 3,489 units recorded in March 2013. Out of which, the bulk of the launched units came from a mega project – Normanton Park, with 1,862 units. This project made up 50.1% of the total launched units in Q1/2021.
Consequently, in terms of the breakdown of launched units by locality, 66.0% of the units launched (2,452 units) were in the Rest of Central Region (RCR) while the remainder were relatively spread across the other two market segments, with 18.7% (694 units) in the Core Central Region (CCR) and 15.3% (570 units) within Outside Central Region (OCR).
Here’s more from Savills:
Apart from Normanton Park, there were four other new project launches in the quarter. Two of these new projects, comprising 2,262 units, came from the RCR, followed by two other projects with 467 units coming from the CCR, while the OCR saw only one new launch from J@63 with 14 units.
Due to the increase in launched units, new sales rose by 34.2% QoQ and 62.5% YoY to 3,493 units. However, the units sold in the first month of this year was still lower than that of the units launched in the month. In the subsequent two months of the quarter, the number of units sold surpassed that of the launched volume. As there were more project launches in the RCR, new sales from this segment of the market constituted 51.5% of the new sales (1,798 units) in Q1/2021. Around 29.0% (1,014 units) were in the OCR and the remaining 19.5% (681 units) in the CCR.
Out of the top five best-selling projects in Q1/2021, three of them were new launches in the quarter. These included Normanton Park (sold 729 units), Midtown Modern (sold 362 units) and The Reef at King’s Dock (sold 341 units). Among the three, the take-up rate for The Reef at King’s Dock was the highest at 79.5%. During the fi rst weekend of launch, over 90% of the launched units (around 280 of 300 units) were sold with prices ranging from S$2,002 per sq ft to S$2,828 per sq ft, with all of the one-bedroom units fully sold in the same weekend. The positive sales momentum was largely driven by strong demand from singles, young couples and families, who were attracted to the prime location in the upcoming Greater Southern Waterfront.
Midtown Modern, a project in the CCR, achieved the second highest take-up rate of 64.9%. This is the second condominium development in GuocoLand’s Guoco Midtown, after Midtown Bay. By the end of the weekend of the maiden launch, nearly 61% of the units were taken up. All one and two-bedroom units and nearly half of all three-bedroom units were reported sold in the launch weekend.
On top of that, a 3,520 sq ft five-bedroom penthouse of S$14.83 million and eight four-bedroom units were also sold. The investors and owner-occupiers that purchased units at the developments may have been drawn to the extensive range of amenities, its direct connection to the Bugis MRT station and the revitalisation of the Beach Road/Bugis area with the development of Guoco Midtown and redevelopment of Shaw Tower. Transacted prices of the project ranged from S$2,299 per sq ft to S$4,213 per sq ft, with an average price of S$2,775 per sq ft.
Along with higher new sales, there was also strong demand for condominiums in the resale market. In Q1/2021, the transaction volume in the secondary market increased 6.5% QoQ to 4,607 units. Owing to the uncertainties of construction delays, buyers may prefer properties that are in “ready-to-move-in” condition and also, the significant price gap between new and resale properties may have led them to consider resale properties instead. Transaction volume in the resale market across.