843 private homes were sold by developers in March, approximately three times of the 303 units transacted in February. On a year-on-year basis, sales volume was 38% higher with Cairnhill Nine having 177 units sold at $2,441 psf median price. This new launch project was widely watched with keen interest due to its prime location in Orchard Road and also being linked to Paragon Mall as well as being attractively priced. Cairnhill Nine experienced almost 90% sales of its 268 residential units with most units being 1 or 2 bedrooms units of which half of them are priced below $2,000,000.
Another best selling new launch condo in a mixed development project is The Wisteria in Yishun where the developer launched at median price of $1,112 psf with 125 out of 216 units sold. All new condo units of this residential project in this mixed development sits on top of its two storey retail mall, The Wisteria Mall.
Poiz Residences by MCC Land sold another 59 new condominium units at a median price of $1,475 psf which was first launched in November 2015 and it has a retail mall which is linked to the Potong Pasir MRT station.
Why the rebound? The rebound in the sales of new home sales was not surprising at all as the strong sales was well supported by the pent up demand after a prolonged supply shrinkage where only 335 new launch condo units sold from December 2015 to February 2016 which is half of the monthly average sales record of 637 units. Another reason is that most of the top selling projects are those having good location such as new condo near MRT and also come with good product mix.
However, the real estate market is expected to remain challenging with the downside risk still looming around due to economic slowdown and at the same time remaining supply of substantial unsold condominium units still available in the market as well as the weakness experienced in the leasing or rental market.
On a positive note, the new launch project pick up is rather encouraging showing some signs of improvement in the sentiments and demand though it may still be too early to tell. If this trend persists with such improvements in both the new launches and record sales transaction in second quarter of 2016, any further price declines will be well moderated in 2016 as compared to the last two years.