Normanton Park leads in 1H2021 sales; consultants predict new home sales to cross 10,000 this year
Photo by: EdgeProp SIngapore
15 July, 2021
SINGAPORE (EDGEPROP) - Based on caveats lodged, Normanton Park was the best-selling private residential project in 1H2021, selling 923 or about 50% of the 1,862 units in the development. The next best-selling project in terms of number of units sold was Midtown Modern, which moved 384 out of 558 units, or 69% of the project, in 1H2021.
“Half of the top 10 best-selling projects in 1H2021 were located in the OCR [Outside Central Region], and we expect this sub-market to do well this year, with the new launches still to come,” says Wong Siew Ying, PropNex head of research and content.
Launches in the coming weeks include: Pasir Ris 8, Watergardens at Canberra, and Parc Greenwich EC in Fernvale in the OCR; Klimt Cairnhill and Perfect Ten in the CCR (Core Central Region); and Bartley Vue in the RCR (Rest of Central Region). “Given the limited OCR launches recently, the new projects in Pasir Ris, Canberra and Fernvale should attract strong interest from owner-occupiers, including HDB upgraders,” notes PropNex’s Wong.
In the first half of this year, developers launched and sold an estimated 6,085 units and 6,530 private housing units (excluding executive condos) respectively, says Nicholas Mak, ERA Realty head of research & consultancy.
1H2021’s tally is over 65% of 2020’s full year take-up, says Tricia Song, CBRE head of research for Southeast Asia. Song expects sales momentum to in the residential market to remain positive.
Meanwhile, unsold stock has declined for eight consecutive quarters to reach 21,634 units as at 1Q2021 – a new low since 4Q2017 – according to Wiong Xian Yang, Cushman & Wakefield head of research Singapore. Unsold stock was at its peak of 37,799 units in 1Q2019, adds Wong.
“With the healthy sales volumes of estimated 3,035 units sold in 2Q2021, unsold inventory is projected to continue depleting further and would approach 2Q2017 historical low of 16,929 units [based on data since 3Q2006]. This might prompt developers to ramp up on their land acquisition activities,” says Cushman & Wakefield’s Wong.
CBRE’s Song expects 2021 new developer sales to come in at around 10,000 to 11,000 units, exceeding 2020’s 9,982 units.
ERA’s Mak is even more optimistic: “In a sign that the residential property market has put the worst of the pandemic behind it, developers could sell about 11,000 to 12,000 private homes [this year],” he says. If this is achieved, it would be “the highest annual sales volume since 2013, when the government introduced two rounds of cooling measures including the Total Debt Servicing Ratio structure,” adds Mak.