Developer launched 167 units for sale and sold 645 units. Sales in February was 60.5% lower than January 2021 and 33.9% lower than the same period a year ago.
The sharp drop in sales can be attributed to the Chinese New Period where developers held back on launches. This is also the lowest number of units launched for sale in February. The previous low was in February 2018 which was also coincided with Chinese New Year.
Sales in the primary market is very much supply led. When there are new project launches to excite the market, sales volume will be higher. Take for example, in February 2020, The M was launched for sale, pushing monthly sales close to 1,000 units. If The M was not launched in February 2020, sales will be around 600 units. After adjusting for project launches, developer’s sales in February 2021 is on par with a year ago. Demand for homes is still healthy in the market.
District 15 saw a spike in interest in February. We believe that some buyers are beginning to appreciate that supply in District 15 will be constrained in the future as a result of tighter Government rules on the average size of dwelling units and stepping in to buy a seaside living lifestyle.
Sales in March will be higher than February with the launch of The Atelier and Midtown Modern. With the depleting stock of unsold units in the market, developers are feeling a pressing need to replenish their land bank. There has been three sale of residential sites by private owners to date with another seven sites launched for tender.