Pinetree Hill 29% Sold , Grand Dunman 54% Sold - Are new launches losing its shine

 

When a new launch sells 29% during the first day of launch, is it a success?

Pinetree Hill sold 150 units on launch day despite a strong turnout of 1500 visitors on the first day of preview. Grand Dumna collected 1400 cheques but only sold 550 units, or 54.9%, on the first day. Compared to mid-last year, where selling out at 75%+ is considered good, the performance this year has been less encouraging.

Here are 5 things we noticed about the recent new launches.

1 East is better than West?

Screenshot-Anthony_Chua Tiktok

PineTree Hill is located at Pine Grove (Clementi/Upper Bukit Timah region). It has sold 150 units compared to 540 units at Grand Dunman, located at Dunman Road (East Coast / Marine Parade Region). While Grand Dunman is a bigger project, the take-up rate suggests that there is a stronger preference for the East. With both launches at a similar price range at $2500 psf, it would imply that East is preferred compared to the West.

2 Demand is waning for smaller units

It used to be that 1 and 2 bedrooms were sold out on Day 1. These days, there is still balanced stock at hand. Grand Dunman has 87 One Bedroom and 65 Two Bedrooms for sale. At Pinetree, there are 17 One Bedroom and a whopping 141 Two Bedrooms that are still in stock.

3 More investors than homeowners?

The majority of the sales are for the smaller units. At Grand Dunman, 342 units sold were 1-2 bedrooms, with the balance for 3 to 4 bedrooms. At Pinetree Hill, 90 out of 150 units sold were 1-2 bedrooms. Usually, the demographics for these units are investors rather than for their own stay.

4 Good turnout does not equate to good sales

Pinetreel Hill has 1500 visitors on day 1 of the preview. In the end, it garnered fewer cheques than the number of units sold. Interestingly, Grand Dunman 1499 cheques collected for 1088 units do not imply strong sales as some of those who submitted cheques may not necessarily be 'serious' buyers.

5 There are still Buyers, but they are selective

Despite Grand Dunman's 54% performance, it did move 550 units on the first day. In comparison, there were only 216 units sold for The Continuum and 340 units sold for Tembusu Grand. Both are located at D15 and within 1 km of each other. Grand Dunman's 550 units is a strong performer, and it could be attributed to its distance from MRT.

On the flip side, Pinetree Hills unsold stock of 79% implies that not all new launches are created EQUAL. As a prospective buyer, it is best to do your homework before taking the plunge.

We did highlight that new launches would not be hitting new highs anytime soon back in April. Looks like this trend is continuing in the near future.