Huttons’ comments on January 2021 developer sales
Developer launched 2,600 units for sale and sold 1,609 units. Sales in January was 32.2% higher than December 2020 and 159.5% higher than the same period a year ago. The number of units sold in January was the highest January sales since 2013.
The number of units launched for sale is the highest January figure since URA started the series in 2007 and the highest since March 2013. Developers rode on the positive sentiments and pushed out more units for sale.
The exceptional performance in January can be attributed to two unique project launches – Normanton Park and The Reef at King’s Docks. We started the year on an excellent foot with Normanton Park selling more than 600 units on its opening day of sales. The sales achieved at Normanton Park means another record has been broken, this time in the RCR. This certainly creates a positive vibe and sets the tone for the property market. The affordable quantum, low interest rate environment, ample liquidity, large base of HDB upgraders, recovery of the property market, perceived shortage in supply and pent-up demand for this long awaited project resulted in the overwhelming response to this project.
Sales was given an added impetus in January because of the Fear Of Missing Out should fresh cooling measures be imposed on the market.
The strong sales volume at The Reef at King's Docks is a testament to the ample liquidity in the market. It is a very unique project and hard to find a lifestyle resort home with the sea and marina at your doorstep. The floating deck is the first in Singapore. The good entry price point for the first project in the Greater Southern Waterfront gives buyers a first mover advantage in future growth potential.
Parc Central Residences, the first EC to be launched in the East since 2012 sold almost 60% due to pent-up demand and strong product attributes, proving that ECs offer a good alternative to buyers who wish to upgrade their lifestyle.
The top ten private residential projects for January 2021 are:
Source:URA, Huttons Research
While January sale numbers have raised the possibility of fresh cooling measures, it is largely down to the two new project launches – Normanton Park and The Reef at King’s Docks which accounted for more than 50% of the units sold. Past experiences from cooling measures have taught that large crowds will form outside the showflats when the Government announces new measures. In this “new normal” where crowds are frowned upon and discouraged, the Government may want to take this into consideration should the announcement of new cooling measures spark huge crowds and perhaps a spike in Covid-19 infections.
If sales from Normanton Park and The Reef at King’s Docks are removed, sales from earlier launched projects stand at 763 units which is a sustainable pace without major launches. That will bring us to 9,000 new sales or even more in 2021 barring any shock.
There may not be any project launch in February. This means the monthly sales may behalf of January's level. We may see more launches like Midtown Modern, The Atelier, Provence Residences, One Bernam, One-North Eden, Irwell Hill Residences, Peak Residences, Grange 1866, Perfect 10, Cairnhill 16, Klimt Cairnhill, Pollen Collection, LIV @ MB and a mixed use development at Pasir Ris from March to June.