New private home sales in Singapore fell by 22.8 percent to 301 units in February 2016, from 390 units in the same period last year, according to data released by the Urban Redevelopment Authority (URA) on Tuesday, 15 March.
On a monthly basis, the sales volume fell by 6.8 percent from the 323 units sold in January 2016, even though new launchings surged 31.4 percent to 209 units from 159 units previously.
Based on JLL, the “slower developer sales were expected because of the Lunar New Year lull and the continuation of the volatility in the stock market from the prior month”.
By location, sales in the Core Central Region (CCR) fell to 25 units in February, just shy of the 26 units sold in the prior month, and the 30 units sold a year ago.
In the Rest of Central Region (RCR), trade amounts edged up to 82 units from 81 units in January 2016. But compared to the 185 units sold a year ago, this region witnessed the biggest year-on-year decline of 56 percent.
Meanwhile, developers sold 194 units in the Outside Central Region (OCR). It is an 11 percent improvement from the 175 units sold in February 2015, while this translates to a 10 percent fall from the 216 units transferred in the month before.
Based on PropNex Realty, properties in the OCR accounted by developers for 64 percent of total revenue, while those in RCR and the CCR made up 27 percent and nine percent respectively.
Looking forward, new private home sales could fall by around 10 to 15 percent year-on-year to between 1,000 and 1,200 units in Q1 2016, the lowest level found for the past three years, said Mohamed Ismail, CEO of PropNex.
However, trade quantity could rebound in March The Wisteria and due to the reasonably good functionality of two just established developments, Cairnhill Nine.
For the whole of 2016, private home sales are expected to stay weak at around 8,000 units, as long as the property cooling measures stay. And the upcoming launch of the new EC, Parc Life Executive Condo will be the next project to look out for.