Strategies to thrive in an uncertain property market.
AS THE adage goes: when the going gets tough, the tough get going. Since the new property cooling measures were implemented in July 2018, the residential property market has become more muted. Developers - many with new launches waiting in the wings - probably had to rethink their plans and re-evaluate market dynamics. More than half a year since the measures hit the market, it appears developers have taken them in their stride.
In recent months, developers have rolled out new projects cautiously - taking care not to flood the market with new supply. To this end, several residential launches have done relatively well. Spacing out new launches will continue to be important this year, particularly with more developments in the launch pipeline.
Launch and take-up
In Q4 2018, 1,657 uncompleted private homes were launched for sale, and 1,793 uncompleted units were sold, working out to a takeup rate of 1.1 times. While this rate is lower than the 2017 and Q1 2018 takeup rates of 1.5 times - during which there was a shortage of launches and buyers had to dig into earlier launches - a rate of close to 1.0 times is still very healthy.
In 2019, we expect buyers to be spoilt for choice with abundant launches as a result of the bumper land-banking in 2017-2018. We estimate over 17,000 units in 58 new projects could be launched for sale in 2019, though some could spill over to 2020.
Adapted from The Business Times 21 March 2019