How well did new launches in 2015 perform?

Posted by edison_foo on December 24, 2015
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As we approach the end of 2015, we have seen more than 7000 new private non-landed residential homes launched in the market despite gloomy sentiments which have been accumulating since the last property cooling measure (the Total Debt Servicing Ratio) was introduced in June 2013.

Even with new lending rules in place, a couple of new launch projects this year have recorded sales which were above market expectations and this is definitely an encouraging sign for the property market in Singapore.

Let’s take a look at the numbers below as we review the performance of the new launches in 2015.

PROJECT NAMETENURELOCATIONTOTAL NO. OF UNITSMONTH OF LAUNCHEST. NO. OF UNITS SOLD ON LAUNCH DAYEST. TOTAL UNITS SOLD TO DATE (20 DEC 2015)AVERAGE PSF
SYMPHONY SUITES99-YEARYISHUN CLOSE660Jan-1554169S$1,027
MARINE BLUEFREEHOLDMARINE PARADE ROAD124Jan-153133S$1,834
KINGSFORD WATERBAY99-YEARUPPER SERANGOON VIEW1165Feb-15140300S$1,110
SIMS URBAN OASIS99-YEARSIMS DRIVE1024Feb-15112342S$1,384
BOTANIQUE AT BARTLEY99-YEARUPPER PAYA LEBAR RD797Mar-15254531S$1,287
NORTH PARK RESIDENCES99-YEARYISHUN CENTRAL920Mar-15400498S$1,368
HILBRE 28999-YEARSHILLSIDE DRIVE28Apr-15312S$1,323
POLLEN & BLEU99-YEARFARRER DRIVE106May-151012S$1,922
HIGH PARK RESIDENCES99-YEARFERNVALE ROAD1390Jun-1511001272S$988
ADANA @ THOMSONFREEHOLDOLD UPPER THOMSON ROAD74Jul-152139S$1,617
PRINCIPAL GARDEN99-YEARPRINCE CHARLES CRESCENT663Oct-15120158S$1,628
THOMSON IMPRESSIONS99-YEARLORONG PUNTONG87Oct-15288105S$1,412
THE POIZ RESIDENCES99-YEARMEYAPPA CHETTIAR ROAD731Nov-15260319S$1,431

** Note: Source from SquareFoot Research and URA

Based on the statistics above, High Park Residences is by far the most popular among all the new launches in 2015, mainly due to its lowly priced units (from as low as S$374,000 for a studio unit).

However, the demand for new launch developments has remained subdued as there are still 3,979 unsold units out of the 7,769 residential homes launched in total in 2015, which is approximately 51.2% of balance units left.

Then again, with this large amount of unsold new homes in the property market right now (not including those from 2013 and 2014), how many more new homes are we expecting from 2016? Let’s take a look at some of the possible upcoming new launches in 2016 based on the land sales this year:

LOCATIONPLANNING AREASITE AREA (SQFT)NO. OF BIDS RECEIVEDDEVELOPERWINNING BIDWINNING PSF PPREXPECTED NO. OF UNITS
CLEMENTI AVE 1CLEMENTI140,3396SINGLAND AND UOLS$302.1mS$651.68500
ALEXANDRA VIEWBUKIT MERAH150,71210TANG SKYLINE PTE LTDS$376.88mS$851400
LORONG LEW LIANSERANGOON203,53311VERWOOD HOLDINGS PTE LTD, INTREPID INVESTMENTS PTE LTD AND TID RESIDENTIAL PTE LTDS$321mS$710500
WEST COAST VALECLEMENTI168,5696EL DEVELOPMENT PTE LTDS$314.1mS$551600
TAMPINES AVENUE 10 (PARCEL D)TAMPINES422,27912MCC LAND (SINGAPORE) PTE LTDS$227.78mS$482.58490
STURDEE ROADKALLANG191,63716SL CAPITAL (1) PTE LTDS$181.19m$787.90270
JURONG WEST STREET 41 (PARCEL B)JURONG WEST17,8049MCL LAND (VANTAGE) PTE LTDS$338.12mS$630.13600
UPPER SERANGOON ROAD / TAMPINES ROADHOUGANG108,68411ASSET LEGENDS$276.8mS$848.84340
DUNDEE ROADQUEENSTOWN113,0219HY REALTYS$483.2mS$871645
TOA PAYOH LORONG 4 / LORONG 6TOA PAYOH131,31914EVIA REAL ESTATE, GREATEARTH AND GAMUDA BHDS$345.86mS$755535

** Note: Source from URA and various news articles

As compared to 2015, the Singapore property market should expect approximately 4,880 non-landed private residential units being launched in 2016. This number is 37.2% lesser than what we’ve seen in 2015.

In our opinion, the highlight of 2016 could be the new launch at Alexandra View located just next to Redhill MRT Station. Given the significantly lower land cost (as compared to its nearby projects) which is a clear advantage in terms of pricing, it remains to be seen how Tang Skyline Pte. Ltd. will position the new development upon launch.

How well did new launches in 2015 perform?
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