In Q1 2018, the overall condominium market continued to recover with the downtown area performing well due to healthy demand while growth in the midtown/suburban areas remains concentrated along both existing and under construction mass transit lines.

A total of 950 units were launched in the downtown area this quarter compared to 4,674 units launched in Q4 2017, representing a decrease of 66% Y-o-Y. The total number of downtown units launched in the first quarter of 2018 represented only about 8% of the 12,544 units launched in the whole year of 2017. We believe that developers have slowed down their launches in the downtown area this quarter following a large number of units launched in Q4 2017.

Although market sentiment has improved, we believe that buyers in the downtown market remained selective and cautious, resulting in a mixed sales performance. Only projects that are in good or new locations with the right pricing that match the demand in the area will continue to outperform the market. We do not believe that prices in the downtown area will drop, except possibly in a very limited number of completed projects with a high level of unsold inventory.