Huttons’ comments on October developer sales numbers
Developer launched 423 units for sale and sold 642 units. The number of units launched for sale in October is the lowest in 2020 and the lowest since Dec 2019. The number of units sold is 51.7% lower than September 2020 and 31.1% lower than a year ago. This is not the largest drop to date. April’s circuit breaker witnessed an even greater drop of 58%. The trend of higher consecutive monthly sales came to an end in October.
This is probably due to two factors – new regulations by the Controller Of Housing (COH) on the reissue of options and lack of launches that will bring in the volume.
It was like a game of blink in October with buyers staying on the sideline waiting to see if developers will adjust their prices. This group of buyers belong to those who do not need an extension of the option to purchase but nevertheless held back their purchase to observe. One project in the East saw its volume more than halved after the new COH regulations. Developers on the other hand did not have plans for major launches in October.
The top ten private residential projects for October 2020 are:
Source: URA, Huttons Research
However buyers who aspire to upgrade their lifestyle took advantage of the buoyant conditions in the resale market (HDB and private) to market their properties for sale. There was a noticeable increase in activities and this will translate to higher new sales once the transaction is completed and funds are in.
There were 11.11 promotions rolled out by developers in November in conjunction with the largest shopping event, Singles’ Day. Promotions of more than $500,000 were dangled for select units for limited time. This will drum up interest and translate into sales.
The highly anticipated launch of The Linq @ Beauty World sold more than 96% on its first day of launch. The sales were across all unit types and further proved that there are many buyers in the market who do not require re-issue of options.
There will be four more launches pencilled in for the rest of the year. They are Ki Residences at Brookvale, The Landmark, Phoenix Residences and Clavon. Sales in 2020 are likely to come in between 9,000 and 9,500 units.