Here’s a rundown of the residential projects launched in Singapore in Q4 2021
There were 27.7% less units launched during the quarter.
In 2021, Savills says there was no let-up in the number of launched units in the final quarter and was as strong as those of the previous quarters. In Q4/2021, 2,275 units were launched, up 5.9% from the 2,149 units in the previous quarter. However, on a YoY basis, the number of units launched was 27.7% lower.
Here’s more from Savills:
In the quarter, 60.3% of the launched units were in the Rest of Central Region (RCR) (1,372 units). These came from four new launches. The number of launched units in RCR in Q4/2021 was more than triple the figure in Q3/2021 and more than double the figure a year ago. In the fourth quarter, the new projects launched in RCR were CanningHill Piers (launched all 696 units) and Mori (launched 100 of 137 units). Apart from that, there were launches from previously-launched projects such as Avenue South Residence and The Woodleigh Residences.
The same was observed in the Core Central Region (CCR) as there was a QoQ rise of 38.5% in the number of units launched (568 units) in Q4/2021. The launched units in CCR made up 25.0% of the total units launched island-wide in the quarter. The three new launches in the CCR were Cairnhill 16, Perfect Ten and Jervois Mansion.
On top of this, a previously launched project, The Avenir released another 113 units in Q4/2021, bringing the total number of launched units for the development to 263 units (out of its 376 units). While QoQ increases in number of launched units were observed for RCR and CCR, the number of units released for sale in Outside Central Region (OCR) fell significantly by 74.6% QoQ to 335 units. In Q4/2021, there was only one new launch in OCR. This came from The Commodore which released all 219 units for sale. Other than that, three other previously launched projects (Clavon, Sengkang Grand Residences and The Watergardens At Canberra) released a total of 116 units.
For the whole of 2021, 10,496 units were launched, 3.6% lower than the 10,883 units in 2020. This was the second consecutive year of decline as there were fewer land sales in 2019 and 2020. While there were some small sites purchased by developers through collective sales, the cooling measures implemented in July 2018 led developers to turn cautious when it comes to acquiring larger sites.
Although OCR has traditionally been the market segment with the highest number of launched units, this was not the case in 2021. Bulk of the launched units in 2021 were in RCR, comprising 46.2% of the units (4,854 units). The number of units released for sale in RCR in 2021 was also 12.8% more than that in 2020. The same pattern was observed in the CCR with the numbers growing from 1,545 units in 2020 to 2,691 units in 2021. For OCR, 2,951 units were launched, making up 28.1% of the total units launched for sale island-wide. This was 41.4% lower than the 5,033 units released for sale a year ago.
Despite an increase in the number of launched units, new sales declined 15.0% QoQ to 3,018 units, which may be due to the year-end festive period and school holidays and the heightening of the ABSD rates with effect from 16th December 2021. Nevertheless, this was still 15.9% higher than the 2,603 units in the same period a year ago. The quarterly decline in total new sales volume was largely attributed to decreasing new sales in the OCR, which fell 51.2% from the peak of 2,036 units in Q3/2021 to 993 units in Q4/2021.
Other than for reasons like the recalibration of the cooling measures and year end festivity eff ect, the other reason for the decline was due to the lack of new launches. On the other hand, increases in new sales volume were observed for the CCR and RCR by 31.8% and 34.5% QoQ to 584 and 1,441 units respectively. For the RCR, the significant increase in new sales can be attributed to more launched units, with new sales exceeding the launched units in Q4/2021.
As such, bulk of the total new sales in the quarter were in the RCR, accounting for 47.7% of the total, while new sales in the OCR and CCR constituted 32.9% and 19.4% respectively. While the QoQ decline in new sales volume may also be attributed to the implementation of the new round of cooling measures on 15th December 2021, more time may be needed to fully assess the impact of the new cooling measures.
Of the top five best-selling projects in Q4/2021, three of which were new launches across all market segments, namely CanningHill Piers (RCR), The Commodore (OCR) and Jervois Mansion (CCR). The highest take-up rate was recorded at CanningHill Piers with 82.3% of its 696 units (573 units) taken up in the final quarter of the year. All unit types were well received by the buyers, who were mainly locals.
The only penthouse (8,956 sq ft) in the development, with panoramic views of the city skyline and Singapore River, was also sold for S$48 million, translating to S$5,360 psf. CanningHill Piers is the residential component of the mixed-use development that will be built on the site of the former Liang Court, Novotel Singapore Clarke Quay and Somerset Liang Court. Apart from the residential component, the mixed-use development will also include the first Moxy Hotel in Singapore, serviced apartments and retail space.
In the CCR, the launch of Jervois Mansion saw 101 of its 130 units taken up (77.7%) with 25 of the units retained by the developer for long-term investment. The average selling price of the project was S$2,576 psf with the bulk of the transacted units, or 67.3% (68 units) being the smaller units that are below 1,000 sq ft.
In the suburban areas, the new launch The Commodore sold 147 of the total 219 units, working out to a take-up rate of 67.1%. The attractive pricing of the units, with the smaller units (below 1,000 sq ft) being priced below S$1.5 million, made it palatable for homebuyers to acquire the units either for investment or owner-occupying purposes. All of the one- and two-bedroom units are fully sold. The positive market sentiments drove new sales numbers, rising 30.5% from 9,982 units in 2020 to 13,027 units in 2021, the highest since 2013 when 14,948 units were sold.
For the secondary market, after five consecutive quarters of increase, sales moderated in the final quarter of 2021, declining 11.3% QoQ to 4,907 units. However, this was still 13.4% higher than the same period a year ago. Similar to the decline in new sales, the fall in secondary sales can also be attributed to the lull period in Q4 arising from the festive period and school holidays and also the heightened ABSD rates that came into force on 16th December 2021.
The largest decline in secondary sales was in CCR, decreasing 13.1% QoQ to 875 units. Resale volume in RCR and OCR fell 10.8% and 11.0% QoQ to 1,316 and 2,716 units respectively in Q4/2021. In 2021, secondary sales almost doubled from the 10,927 units recorded in 2020 to 20,530 units. This was the highest since 2010 when 22,608 units were sold in the secondary market.
In Q4/2021, bulk, or 80.8% of the non-landed residential purchases (5,621 units) were made by Singaporeans, 0.9 of a percentage point (ppt) lower than the 81.7% in Q3/2021. In terms of transaction volume, the number of non-landed private residential units bought by Singaporeans declined 13.7% QoQ. However, compared to the same period a year ago, purchases by Singaporeans in Q4/2021 was still 13.7% higher.