On October 26, URA released the 3rd quarter 2018 real estate statistics. Let’s study them in details to see what the latest property numbers are telling us.
I will share with you four things In this podcast:
1) Where the numbers show the shrinking size of buyers in the market;
2) Why the developers are not doing so well in Q3;
3) Why Rest of Central Region will continue to be the underdog; and
4) Why more are buying HDB resale flats instead of private homes.
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It was reported that 2,000 previewed woodleigh residences. In their highly anticipated launch, it was reported that only 28 units were sold on their launch day out of 667 units. Only 4%!!! Is this he biggest flop in 2018?
What were the other 1,972 visitors looking at or thinking?
Market sentiments and sales are low. But morale cannot be low. The other 1,972 are dispensable walk-ons in movies to fill up the crowd scenes.
They must have thought that 2.5m for a 1200+ square foot apartment was reasonable. Sorry but they must have been overly optimistic. No sane person would have forked out that sort of money for an apartment that size.
A proof of wrong pricing kills a new launch. Who will buy S$2,000 psf in Upper Aljunied in this market? They should have followed Park Colonial to price at S$1,600 psf..
Developer SPH estimated wrongly that their extensive advertising and advertorials in the papers can work wonders.
There are still 28 such buyers you can find, maybe they are known associates supporting the project. Single digit is a lonely number.
News reported that they launched only 50 units out of their 667 units and surprise, surprise, they sold 60% !!
Showflat is also closing and they would relaunch in 2019. ( because sales was too outstanding) ?!?
Festive season is coming so no point to continue wasting manpower and resources. Wait till 2019 to give away CNY hongbaos with big discounts can hopefully move more units.
It was reported that they intended to launch only 50 units, out of 677. However, they sold 60% of their launch or about 30 units out of grand total 677 units. Given the good response they released another 50 units.
(They are intending to keep their units for 2019, only soft launching 50 to 100 units, out of 677 units)
The developer just shows the market that it lacks the confidence to launch.
Remember Hundred Palms Residences, The Hillford, Alexandra Central and J Gateway launched 100% of their units and sold out on the first day? Who needs preview, VIP launch, soft launch, official launch, balloting for 50 units … so many time-consuming gimmicks to sell 30 units.
https://www.propertysoul.com/2014/10/16/to-launch-or-not-to-launch/