Developers rushing to launch. The URA released sales numbers for Feb 11 yesterday, and the number of non-landed residential units launched jumped a whooping 48.3% YoY to 1,682 units. This is the highest Feb figure in the last three years; the month being traditionally quiet due to Chinese New Year. We believe developers are accelerating their launches to capitalize on current prices and buyer sentiment. Major new launches include Waterfront Isle by Far East Organization and My Manhattan by CEL Development.
While sales cooled… Despite the record launches, the number of non-landed units sold fell 8.2% YoY to 1,071 units. This translated to a measly monthly take-up rate of 63.7% - the lowest since Jan 09 and an indication that the latest government curbs are cooling buyer sentiment. Skillful marketers and those with smaller projects, in our opinion, will have an edge over the rest. For instance, Waterfront Isle and Loft@Stevens had sold 81% and 98% of their units launched in Feb 11, respectively. We visited the Waterfront showroom and noted that the affordable "shoebox" units were offered first. Moreover, these were priced at a low $920 psf with a 5% cash-back voucher (on TOP).
... and prices remained steady (for now). To get a broad sense of price direction, we examine the "same-project" sales numbers over the months of Jan and Feb 11, segmented by regions. According to our findings, prices remained stable in the CCR and OCR respectively, while we saw mild price appreciation in the RCR largely due to Spottiswoode 18 and the Interlace. Given the coming supply and weakening buyer sentiment, we think prices will soften going forward. That said, we note that large developers are cash-rich currently and need not cut prices excessively.
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