Bullish sales in Outer Central Region becoming infectious

Developers in nearby Core Central Region and Rest of Central Region are regaining confidence and ramping up their residential launches.

Sales have continued to buck the downward trend in the Outer Central region, inspiring hopes for a similar take-up in CCR and RCR. Developers have ramped up their sales activities in April to almost double the number of units launched compared to March.

Here's more from Colliers International:

Both the Core Central Region (CCR) and Rest of Central Region (RCR) have shown signs of pickup in launch and sales activities, indicating that the exuberance and buoyant activity in the OCR (Outer Central Region) is gradually filtering to the mid- and high-end tiers amid the low interest rate and high liquidity environment.

After testing the market for the last two months, project developers in these market tiers stepped up launch activities from new and previously launched developments.

In the RCR, developers launched 642 units, up 52.1% MoM, and sold 867 units, an increase of 69.7% over March’s sales. New launches in the RCR include the 509-unit Sky Habitat which found buyers for 131 units for the 180 units launched; the 244-unit Katong Regency which was sold out soon after its launch; the 128-unit Fulcrum which sold 10 units from the 39 units launched; the 100-unit Eon Shenton which sold 87 units; the 30-unit 91 Marshall which sold 27 units; and the 10-unit Ria Apartments which launched and sold two units. These projects made up 92.5% and 57.7% of all units released and sold in the RCR.

Overall, projects in the RCR accounted for 26.9% and 34.9% of all units launched and sold, respectively in April 2012, up from 16.3% and 21.4% correspondingly in March 2012.

A similar situation was also observed in the CCR, where developers rolled out 126 units in April, more than double the level in March. They found buyers for 106 units, up 86% MoM. As a result, the proportion of project launches and sales in the CCR to the total launches and sales in April expanded to 5.3% and 4.3% respectively, compared to the corresponding share of 1.6% and 2.4% in March.

New launches in the CCR include the 74-unit 8 Bassein (16 units sold); the partially launched 53-unit TwentyOne Angullia Park (3 units sold) and Barker 9, a fully launched six-unit strata landed housing development which found 1 buyer. While sales from these projects were relatively slow - 20 units sold out of the 86 units released - projects launched previously saw buying interest for another 86 units in April. Examples of these developments include Rochelle at Newton (19 units sold), the Scotts Tower (8 units sold) and Suites@Newton (5 units sold).