In the midst of encouraging sales for new launches in recent weeks, URA announced that prices fell across the private residential, commercial and resale public housing segments in the first quarter, extending the drop to 14 quarters in a row confirming the flash estimates released in early April. This is the longest losing streak in 13 years but the pace of decline is slowing indication that the bottom may be near. I said may because we’re not out of the woods yet. MAS announced in its latest monetary statement that “the outlook for the global economy has improved slightly since the October 2016 MPS, although downside risks remain“.
Overall private home values slipped by 0.4 per cent compared to Q4 led by landed property. The drop in the index was slightly smaller than the 0.5% decline last quarter. With brisk sales and rising launch prices recently the bottom may be in sight. Seaside Residences attracted a huge pre-launch crowd and sold more than 70% of units during the first weekend of launch. Sentiment is certainly on the rise, for new launches at least. Resale market is still languishing. This is a dichotomy that should resolve itself soon.
Other projects coming on-stream are the Clement Canopy, Grandeur Park Residences in Tanah Merah, Artra in Redhill and Park Place Residences At PLQ in Paya Lebar. Last month, developers sold 1,780 new units, excluding executive condos, up about 82 per cent from the 979 in February – the highest monthly sales since June 2013. As at March 31, The Clement Canopy had sold about 53 per cent of units, Grandeur Park Residences about 67 per cent, and Park Place Residences At PLQ nearly 51 per cent.
It will be clear soon how prices will trend this year.