September 2023 Sees Steep Decline in Private Home Sales Amid Market Uncertainty

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16 October 2023, Singapore – Developer sales remained subdued in September due to the absence of major launches and prevailing soft market sentiment. New private home sales, excluding executive condos, amounted to 217 units, representing a 44.9% decline from the 394 units sold in August and marking the second consecutive month of reduced sales volume. The only new project launched in September was the 23-unit The Shorefront in Pasir Ris.

September’s sales figure is also the lowest in nine months, with only 170 new units transacted in December 2022. Compared to the previous year, new private home sales in September saw a significant drop of 78% from the 987 units sold in September 2022. For the first nine months of 2023, developers sold an estimated 5,407 new private homes, excluding executive condos, compared to 6,409 units during the same period in 2022.

Source: URA

 

All three sub-markets experienced month-on-month declines in home sales in September, with the Outside Central Region (OCR) seeing the steepest fall of nearly 64% to 70 units. The decrease in OCR sales can be attributed to the higher base in August, where new projects like The Arden and The Lakegarden Residences boosted sales. The best-selling OCR project in September was Lentor Hills Residences, which transacted 17 units at a median price of $2,231 per square foot (psf). Newly-launched The Shorefront sold 3 units at a median price of $1,902 psf.

In the Rest of Central Region (RCR), developer sales fell to a six-month low, with new home sales down by 33% to 71 units in September from 106 units in August. The lack of new launches contributed to the decline. Top-selling RCR projects included Grand Dunman, which sold 16 units at a median price of $2,571 psf, The Reserve Residences, which shifted 11 units at $2,446 psf, and The Continuum, which transacted 10 units at $2,790 psf.

The Core Central Region (CCR) led sales in September with 76 units changing hands, representing a 20.8% decline from August. This marks the lowest monthly new home sales in the CCR in over two years, since 58 units were sold in February 2021. The CCR, known for high-end homes, continues to face challenges from recent cooling measures, including higher additional buyer’s stamp duty (ABSD) rates for foreigners and investors. The lack of major launches in this sub-market also contributed to the decline. Pullman Residences Newton was the overall top-selling project in September, transacting 21 units at a median price of $3,258 psf.

In the Executive Condominium (EC) segment, sales moderated from 255 units in August to 118 new EC units in September, with Altura transacting 100 units at a median price of $1,473 psf, accounting for about 85% of the monthly EC sales. By the end of September, Altura had sold 316 out of its 360 units, nearly 88% of the available units. According to URA data, there were just 319 unsold new EC units on the market, mostly in North Gaia, at the end of September.

Developers placed a total of 68 new units (excluding ECs) for sale in September, down sharply from the 590 units launched in the previous month. No new ECs were launched in September. The traditional Hungry Ghost month, which spanned from mid-August to mid-September, saw developers holding back on new project launches as this period typically sees slower sales.