Normanton Park leads in 1H2021 sales; experts forecast new house sales to cross 10,000 this year

July 15, 2021


Launches in the coming weeks consist of: 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 ought to draw in strong interest from owner-occupiers, including HDB upgraders," keeps in mind PropNex's Wong.

In the first half of this year, developers launched and sold an estimated 6,085 systems and 6,530 private housing units (omitting executive condos) respectively, states Nicholas Mak, ERA Realty head of research & consultancy.

Based on caveats lodged, Normanton Park was the best-selling private residential project in 1H2021, offering 923 or about 50% of the 1,862 units in the development. The next best-selling project in regards to number of units sold was Midtown Modern, which moved 384 out of 558 units, or 69% of the project, in 1H2021.

1H2021's tally is over 65% of 2020's full year take-up, says Tricia Song of CBRE Southeast Asia. Song expects sales momentum to in the residential market to remain positive.

CBRE's Song expects 2021 new condo sales to come in at around 10,000 to 11,000 units, going beyond 2020's 9,982 units.

"If this is achieved, it would be the highest annual sales volume given that 2013, when the government introduced two rounds of cooling measures including the Total Debt Servicing Ratio structure," adds Mak.

"We anticipate 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 consist of: 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 minimal OCR launches recently, the new projects in Pasir Ris, Canberra and Fernvale should draw in strong interest from owner-occupiers, consisting of HDB upgraders," says PropNex's Wong.

Unsold stock has actually decreased for eight consecutive quarters to reach 21,634 units as at 1Q2021-- a new low considering that 4Q2017-- according to Wong Xian Yang of Cushman & Wakefield Singapore. Unsold stock was at its peak of 37,799 units in 1Q2019, adds Wong.

"With the healthy sales volumes of approximated 3,035 units offered in 2Q2021, unsold inventory is forecasted to continue depleting further and would approach 2Q2017 historical low of 16,929 units [based on data because 3Q2006]. This may trigger developers to increase their land acquisition activities," says Cushman & Wakefield's Wong.