New Reporter
16-10-23, 18:00
Developer sales fall 44.9% in September, fewer projects launched amid Ghost Month
Oct 16, 2023
NEW private home sales continued to decline in September, weighed down by an absence of new project launches amid the inauspicious Hungry Ghost Festival.
According to data released by the Urban Redevelopment Authority (URA) on Monday (Oct 16), developers sold a total of 217 private homes in September, down 44.9 per cent from the 394 units moved in August.
The latest September sales figure – which excludes executive condominiums (ECs) – is less than a quarter of the 987 units sold in the same month in 2022. It is also the month with the lowest sales recorded in the year thus far, as well as since December 2022, when developers sold 170 units, noted Huttons data analytics senior director Lee Sze Teck.
That brings primary home sales for the first nine months of 2023 to 5,407 units – 15.6 per cent lower than the 6,409 units transacted in the same period last year, pointed out Chia Siew Chuin, head of residential research, research and consultancy at JLL.
The nine-month tally is also the lowest since 2016, when 5,656 units were sold, she said.
Including ECs, 335 units were sold in September and 68 units launched. In comparison, 649 units were sold and 950 units launched in August.
The dive in property sales is expected, given that the Hungry Ghost Festival only ended in mid-September, said Christine Sun, senior vice-president of research and analytics at OrangeTee and Tie.
During the festival, traditional beliefs have some buyers avoiding home purchases. Developers tend to steer clear of launching projects during that period too.
Just one new project was launched in September: 999-year leasehold The Shorefront at Jalan Loyang Besar in the Outside Central Region (OCR), which saw three of its 23 units sold at a median price of S$1,902 psf.
On top of that, buyers’ sentiment remained “cloudy and slightly chilly”, thanks in part to the cooling measures rolled out in April, said Knight Frank head of research Leonard Tay. “(They are) weighing the increased Additional Buyer’s Stamp Duty (ABSD) against borrowing costs, widespread inflation, economic uncertainty, and ever more public housing options in the form of build-to-order launches in good locations.”
“Buyers have also become notably more discerning in their choices in view of the plethora of options available in the market,” added JLL’s Chia.
The sole bright spot was the EC market, which saw 118 units moved last month, said Lee of Huttons.
“Demand for ECs have been very strong as price sensitive buyers look for the next best alternative to private homes,” he said. “Furthermore, buyers of ECs are given upfront remission on ABSD.”
Of the 118 EC units, some 100 were from Altura in Bukit Batok, the only EC project launched this year. This brought overall sales at the project to 88 per cent, noted Eugene Lim, ERA’s key executive officer.
Altura was also the best-selling project for the second consecutive month, with units sold at a median price of S$1,473 per square foot (psf) in September, said Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors.
Last month, it set a new benchmark price for the EC market as well, with the sale of a 980 square foot unit for S$1.6 million or S$1,585 psf, he added. “(This eclipses) the previous psf price high held by Copen Grand, which stood at S$1,499 psf.”
The freehold Pullman Residences Newton was a distant second with 21 units sold at a median price of S$3,258 psf, noted Tricia Song, CBRE head of research for Singapore and South-east Asia.
Among the three market segments, the Core Central Region (CCR) held up “relatively better” than the other two market segments, said Mogul.sg chief research officer Nicholas Mak. Some 76 CCR units were sold, accounting for 35 per cent of condo and private apartment sales in September.
Wong Siew Ying, PropNex Realty head of research and content, pointed out that this still represents a 20.8 per cent month-on-month decline and marks the lowest monthly new home sales in the prime CCR since February 2021, when 58 units were moved.
Meanwhile, property sales in the OCR plunged 64 per cent month on month to 70 units. In the Rest of Central Region (RCR), it dropped 33 per cent month on month to 71 units.
Looking ahead, analysts expect developers’ sales to remain subdued and buyers’ sentiment to stay muted amid growing macroeconomic uncertainty and rising interest rates.
“In addition, the rising global geopolitical tension and potential fallout from the new war in the Middle East could further dampen sentiment in the property market,” said Mak.
Major project launches on the horizon will mostly be concentrated in the OCR, said CBRE’s Song.
These projects include the 265-unit Lentoria and 474-unit Hillock Green in the new Lentor Hills estate. The Jurong area will see the 368-unit J’den condo, situated on the former Jcube mall, and the 440-unit Sora at Yuan Ching Road. There is also the 341-unit Hillhaven at Hillview Rise.
Developers will need to be sensitive in the pricing of these upcoming project launches to support sales volume, said Chia of JLL. “However, there will not be significant price cuts as developers had committed to earlier capital outlays.”
Overall, market watchers predict that private new home sales, excluding ECs, will range between 6,000 and 7,000 this year – a tad lower than the 7,099 units sold last year.
“Amid weaker sentiment, still-high interest rates and the upcoming December holiday season, developers might choose to push launches into 2024 when interest rates stabilise and sentiment improves,” Song said.
https://www.businesstimes.com.sg/property/developer-sales-fall-449-september-fewer-projects-launched-amid-ghost-month
Oct 16, 2023
NEW private home sales continued to decline in September, weighed down by an absence of new project launches amid the inauspicious Hungry Ghost Festival.
According to data released by the Urban Redevelopment Authority (URA) on Monday (Oct 16), developers sold a total of 217 private homes in September, down 44.9 per cent from the 394 units moved in August.
The latest September sales figure – which excludes executive condominiums (ECs) – is less than a quarter of the 987 units sold in the same month in 2022. It is also the month with the lowest sales recorded in the year thus far, as well as since December 2022, when developers sold 170 units, noted Huttons data analytics senior director Lee Sze Teck.
That brings primary home sales for the first nine months of 2023 to 5,407 units – 15.6 per cent lower than the 6,409 units transacted in the same period last year, pointed out Chia Siew Chuin, head of residential research, research and consultancy at JLL.
The nine-month tally is also the lowest since 2016, when 5,656 units were sold, she said.
Including ECs, 335 units were sold in September and 68 units launched. In comparison, 649 units were sold and 950 units launched in August.
The dive in property sales is expected, given that the Hungry Ghost Festival only ended in mid-September, said Christine Sun, senior vice-president of research and analytics at OrangeTee and Tie.
During the festival, traditional beliefs have some buyers avoiding home purchases. Developers tend to steer clear of launching projects during that period too.
Just one new project was launched in September: 999-year leasehold The Shorefront at Jalan Loyang Besar in the Outside Central Region (OCR), which saw three of its 23 units sold at a median price of S$1,902 psf.
On top of that, buyers’ sentiment remained “cloudy and slightly chilly”, thanks in part to the cooling measures rolled out in April, said Knight Frank head of research Leonard Tay. “(They are) weighing the increased Additional Buyer’s Stamp Duty (ABSD) against borrowing costs, widespread inflation, economic uncertainty, and ever more public housing options in the form of build-to-order launches in good locations.”
“Buyers have also become notably more discerning in their choices in view of the plethora of options available in the market,” added JLL’s Chia.
The sole bright spot was the EC market, which saw 118 units moved last month, said Lee of Huttons.
“Demand for ECs have been very strong as price sensitive buyers look for the next best alternative to private homes,” he said. “Furthermore, buyers of ECs are given upfront remission on ABSD.”
Of the 118 EC units, some 100 were from Altura in Bukit Batok, the only EC project launched this year. This brought overall sales at the project to 88 per cent, noted Eugene Lim, ERA’s key executive officer.
Altura was also the best-selling project for the second consecutive month, with units sold at a median price of S$1,473 per square foot (psf) in September, said Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors.
Last month, it set a new benchmark price for the EC market as well, with the sale of a 980 square foot unit for S$1.6 million or S$1,585 psf, he added. “(This eclipses) the previous psf price high held by Copen Grand, which stood at S$1,499 psf.”
The freehold Pullman Residences Newton was a distant second with 21 units sold at a median price of S$3,258 psf, noted Tricia Song, CBRE head of research for Singapore and South-east Asia.
Among the three market segments, the Core Central Region (CCR) held up “relatively better” than the other two market segments, said Mogul.sg chief research officer Nicholas Mak. Some 76 CCR units were sold, accounting for 35 per cent of condo and private apartment sales in September.
Wong Siew Ying, PropNex Realty head of research and content, pointed out that this still represents a 20.8 per cent month-on-month decline and marks the lowest monthly new home sales in the prime CCR since February 2021, when 58 units were moved.
Meanwhile, property sales in the OCR plunged 64 per cent month on month to 70 units. In the Rest of Central Region (RCR), it dropped 33 per cent month on month to 71 units.
Looking ahead, analysts expect developers’ sales to remain subdued and buyers’ sentiment to stay muted amid growing macroeconomic uncertainty and rising interest rates.
“In addition, the rising global geopolitical tension and potential fallout from the new war in the Middle East could further dampen sentiment in the property market,” said Mak.
Major project launches on the horizon will mostly be concentrated in the OCR, said CBRE’s Song.
These projects include the 265-unit Lentoria and 474-unit Hillock Green in the new Lentor Hills estate. The Jurong area will see the 368-unit J’den condo, situated on the former Jcube mall, and the 440-unit Sora at Yuan Ching Road. There is also the 341-unit Hillhaven at Hillview Rise.
Developers will need to be sensitive in the pricing of these upcoming project launches to support sales volume, said Chia of JLL. “However, there will not be significant price cuts as developers had committed to earlier capital outlays.”
Overall, market watchers predict that private new home sales, excluding ECs, will range between 6,000 and 7,000 this year – a tad lower than the 7,099 units sold last year.
“Amid weaker sentiment, still-high interest rates and the upcoming December holiday season, developers might choose to push launches into 2024 when interest rates stabilise and sentiment improves,” Song said.
https://www.businesstimes.com.sg/property/developer-sales-fall-449-september-fewer-projects-launched-amid-ghost-month