August new private home sales drop 72% m-o-m to 394 units

and more.

August marked a significant drop in new home sales in Singapore, with developers selling 394 units – a 72.1% plunge compared to July’s 1,412 units. This marks a 10% decrease when compared to August 2022 with 438 units sold.

The decline in sales can be attributed to fewer new launches. This month also coincided with the start of the Hungry Ghost Month, which typically slows down market activity. PropNex Realty’s Wong Siew Ying notes that the sales in July were an “impossible act to follow.”

In August, excluding executive condos (ECs), four new projects were launched – Orchard Sophia in the Core Central Region (CCR); TMW Maxwell in the Rest of Central Region (RCR); The Lakegarden Residences and The Arden in the Outside Central Region (OCR). Altogether, 590 units were put up for sale – a significant drop from the 2,156 units launched the month before.

CBRE Head of research for Singapore and Southeast Asia, Tricia Song, explains that the performance of the new private launches was softer compared to July, with no project achieving a take-up higher than the 31% sold at Orchard Sophia with a median price of $2,808 psf. In comparison, new launches in July achieved take-up rates between 29% to 56%.

Knight Frank Singapore’s Leonard Tay notes that homebuyers have become increasingly reticent due to the increasing interest rates and economic uncertainty, leading to strong demand for EC projects. Altura EC in Bukit Batok, which launched in August, was the best-performing project with 63% sold, at a median price of $1,480 psf.

Excluding ECs, the OCR saw the highest number of new home sales at 192 units or 49% of the total developer sales. Despite this, OCR sales were down 61% m-o-m. The Lakegarden Residences clocked in as the second best-performing project with 73 units sold at a median price of $2,101 psf.

Furthermore, the future development in this area is potential, with plans for the High Speed Rail, the Tuas Mega Port and an upcoming Jurong Lake District. This rare Bukit Panjang EC, is the perfect living choice for those who are looking to live close to the city. It provides all the necessary amenities and facilities for a luxurious life. With its proximity to the MRT station and other potential developments, it is the perfect choice for families looking to buy a property in Singapore.

Reinforcing the buyer’s reticence, only 12 non-landed private homes were bought by foreigners in August, representing 3% of total monthly sales. Siling PRs purchased 17% and Singaporeans about 80%.

Moving forward, overall sales this month could remain muted as pent up demand “has been mostly absorbed” and prices have increased significantly – leaving investors with limited room for upside. Partial support can be expected from the new projects that will potentially be launched in October and November, such as Hillock Green in Lentor Central and J’Den in Jurong East.

Knight Frank’s Tay estimates that the new home sales will end the year between 7,000 and 8,000 units, still higher than the 7,099 units sold in 2022 despite the economic uncertainties. This aligns with projections by Hutton Asia. With up to ten new launches from October 2023, developer sales could hit between 7,000 to 8,000 units.