Singapore – In the past year, unsold inventory of brand new private residential units has been depleting noticeably by 56.0% to just over 11,000 units, between the second quarter of 2015 and the second quarter of 2018. Particularly geared towards new condo units, the unsold balance of non-landed properties in Singapore had seen a significant reduction since its last high in 2015.
The recent data released indicate the current lowest level since the beginning of third quarter 2016. With that being said, the constituting 31% of total unsold private real estate assets is currently standing at about 33% of the entire area in Singapore.
Somewhere against the backdrop of Singapore’s private housing market lies a general mixed-bag price performance. Based on new private residential projects of different segments in the market, and there may be better terms for recovery that may be swiftly emerging from the local market.
As evidenced from some key market indicators, it’s just opposed with a favourable and highly commendable recovery in the total new sales of completed condo units such as 8 Saint Thomas Condo located at St Thomas Walk, Orchard Road District 09. So, what does it mean for sub sales and resale going forward?
With the wealthy city state’s sub sale and resale transaction volumes hovering around 1,371 units sold in the second quarter of 2018, it’s comparable to the quarterly average of 691 units sold in 2017 at 68% higher – 465 units. These resale transactions reflected a high % of total sales in local market, which is showing signs of rising interest in value buys of completed condo especially those found in ultra-prime districts.
From a broader price trend market perspective in the real estate market, they are still not fully out of the woods. Amidst the imposing of new property cooling measures, the room for steady economic growth in Singapore is a cautious sentiment especially towards the primary segment.
With that being said, a brand-new revival plan seems to have emerged, ever since the first half of the year 2018. However, after more than 4 years of price declines over 15 quarters, the overall prices in Singapore have been constantly showing gradual increases till the government intervenes with further measures in July 2018.
Despite the trend of a torch burning bright over Singapore in the new project development, the expectations remain low till the end of 2018, it might be the best year Singapore has had from 2017 till now. Moving forward, opportunities are endless as to how the market will turnout, but for the newer properties, future remains bright.