It was no surprise that no new mega-launches project were introduced during June 2015 due to school holidays. And also the 28th Southeast Asia Games which Singapore hosted. Despite the lack of new launches in the market (which resulted in new private home sales falling by 42% in June from May). Despite the decline, there were still ongoing buying activities and concluded sales in previously launched projects.
Video report from Channel NewsAsia on weak new private home sales in June 2015
And it wasn’t just for the earlier mega new launches development in 2015, such as North Park Residences and Botanique at Bartley that were topping the chart for being the best-selling developments. Apparently, buyers were returning to “older” projects. Several of these units were launched 1 to 2 years ago.
Projects no longer sell out in months after. It was reported that they were introduced in the current real estate market. Property purchasers have been looking for flats in previously released buildings over the last two months. Such developments are usually the bigger ones with plenty of remaining units. Certain units, including those in favorable stacks released during later phases, attracted interest and sales.
Another reason for this pick-up in buying momentum is that property buyers evaluated that it is unlikely that property prices will continue to fall. Due to the forthcoming general elections, there is a possibility of revising some of the existing property cooling measures by the end of 2015 or early 2016.
However, in order to lure buyers back to these earlier projects, developers had to engage in various strategies. Such as offering additional incentives, special discounts or referral programmes etc.
One of the new launch condo which experienced a boost in sales is The Panorama (located in Ang Mo Kio, next to St Nicholas Girls’ School). Just in June 2015 alone, 23 units were sold, adding up to the earlier 44 units sold in May. Someone mentioned that this sales momentum started in August 2014. And has been consistently topping the sales chart as one of the 5 best-selling projects each month.
This miraculous reversal in sales performance was mainly. Due to its reduction in purchase prices from the first month of launch in mid-January 2014. The median transacted price was a substantial $1,363 psf, based on the sale of 56 units in total.The latest median price for units sold in June 2015 was S$1,231 psf. That’s approximately a 9.6% price reduction as compared to the price first launched.
One of the other features noted about the Panorama was its position. Approximately 300 meters will separate this location from the future Mayflower MRT Station (which is a component of the Thomson-East Coast MRT Line). And also its close proximity to one of the top schools in Singapore – CHIJ St Nicholas Girls’ School.
