New Reporter
18-12-23, 12:01
New private home sales more than treble in November to highest in four months
Dec 18, 2023
SALES of new private homes surged in November as developers moved 784 units, mostly from three launches – J’Den, Hillock Green and Watten House.
Developers’ sales were up by 286.2 per cent from the 203 units in October and 201.5 per cent year on year, according to data released by the Urban Redevelopment Authority (URA) on Friday (Dec 15).
Demand showed up strongly after a dearth of launches in September and October. Some 970 units were launched in November, the highest since July and higher than the 319 units launched in the year-ago period.
CapitaLand’s J’Den in Jurong East sold 89 per cent of its 368 units at launch. “With no new launches in Jurong East in the last 10 years since 2013, the established infrastructure of malls and healthcare facilities, as well as the growth narrative of Jurong Lake District and the government’s resolve to create a decentralised commercial employment node outside the CBD, this created flash demand for this highly anticipated project,” noted Knight Frank’s head of research, Leonard Tay.
According to caveats lodged, J’Den sold 329 units in November at a median price of S$2,475 per square foot (psf); Hillock Green sold 132 units at a median S$2,110 psf and Watten House sold 109 units at a median S$3,199 psf. Together, these projects sold 570 units, or more than 70 per cent of total sales, in November.
Chia Siew Chuin, JLL’s head of residential research, said: “The sales numbers achieved by these new projects again demonstrate a high level of liquidity in the market, along with ample underlying demand from various types of homebuyers.
“Once again, despite prevailing market challenges and cautious sentiment, the combination of strong liquidity and buyers’ aspirations continues to translate into sales that support price levels whenever an attractive and compelling project is introduced.”
Watten House “was a surprise hit, given its hefty quantum of at least S$3 million per unit”, said Tricia Song, CBRE’s head of research for Singapore and South-east Asia.
https://i.imgur.com/ayQbBBF.png
Wong Siew Ying, PropNex Realty’s head of research and content, noted that the median transacted unit price in the suburban outside central region (OCR) jumped 12.7 per cent from October to S$2,340 psf in November, as sales at J’den propped up prices. “This is the first time that the monthly median unit price of non-landed new homes sold in the OCR has crossed the S$2,300-psf mark,” she said, and the higher prices would lift overall OCR prices in the fourth quarter.
Month on month, median prices in the rest of central region (RCR) rose by 5.4 per cent to S$2,551 psf in November, while the median price in the prime core central region (CCR) dipped by 1.4 per cent to S$3,195 psf.
Christine Sun, OrangeTee & Tie’s senior vice-president for research and analytics, pointed to a marked increase in prime sales in November. Some 150 new non-landed homes were sold in the CCR, the highest sales in the CCR since April 2023 when the government hiked up Additional Buyer’s Stamp Duty (ABSD) rates and doubled the rate for foreigners from 30 per cent to 60 per cent.
November also saw 60 non-landed homes transacted for at least S$5 million, with three deals above S$10 million at Watten House. This marked the highest monthly sales of properties costing at least S$5 million since May 2010, when 63 such units were sold, Sun said. No units were sold for above S$10 million in the previous four months.
The highest-priced condo transaction in November was at Watten House, where a 4,080 sq ft unit sold for S$14.5 million or S$3,545 psf, said Thomas Tan, Singapore Realtors Inc’s (SRI) chief executive officer.
Lee Sze Teck, Huttons Asia’s senior director for data analytics, also noted that a detached house in Mount Rosie was sold to a Singaporean for S$33.9 million during the month. More than 50 per cent of new homes sold in November are for S$2 million and above.
In the executive condominium (EC) segment, developers sold 16 new units in November, down from 21 in the previous month.
Foreign buying remained subdued. In total, 14 foreigners bought new residential properties in November, up from 13 in the month before, according to URA data. Out of the 14 sales, nine deals were in the CCR, four in the OCR and one in the RCR.
After November’s strong showing, “with no new launches in December amid the year-end festivities, 2023 looks set to end with the lowest new-home sales since 2008”, said CBRE’s Song.
Total new-home sales excluding ECs from January to November 2023 reached 6,316 units, some 9.6 per cent lower than in the year-ago period, said JLL’s Chia.
“This is despite a higher launch total of 7,515 units from January to November 2023, compared with 4,483 units correspondingly in 2022 and reflects both market concerns and buyers’ cautious stance,” she added.
For the whole of 2023, volume will not surpass the 7,099 new units (excluding ECs) sold in 2022, said PropNex’s Wong.
PropNex anticipates at least five launches in January – The Arcady @ Boon Keng and The Hillshore in the RCR, Hillhaven and Lentoria in the OCR, and Lumina Grand EC. These projects will offer more than 830 private homes and 512 new ECs.
CBRE’s Song thinks that private residential prices will rise 3 to 4 per cent in 2024, similar to 2023. New launch take-up and sentiment have softened significantly, she noted, and she expects the weakness to carry through into the first half of 2024, with global economic growth set to slow.
“However, things could turn brighter in the second half of 2024 as global demand for Singapore’s exports recover and interest rates cease their surge globally,” she added.
She sees 7,000 to 8,000 new homes being sold in 2024, up from this year but still below the five-year average of new developer sales of 9,763 units, between 2018 and 2022.
https://www.businesstimes.com.sg/property/new-private-home-sales-more-treble-november-highest-four-months
Dec 18, 2023
SALES of new private homes surged in November as developers moved 784 units, mostly from three launches – J’Den, Hillock Green and Watten House.
Developers’ sales were up by 286.2 per cent from the 203 units in October and 201.5 per cent year on year, according to data released by the Urban Redevelopment Authority (URA) on Friday (Dec 15).
Demand showed up strongly after a dearth of launches in September and October. Some 970 units were launched in November, the highest since July and higher than the 319 units launched in the year-ago period.
CapitaLand’s J’Den in Jurong East sold 89 per cent of its 368 units at launch. “With no new launches in Jurong East in the last 10 years since 2013, the established infrastructure of malls and healthcare facilities, as well as the growth narrative of Jurong Lake District and the government’s resolve to create a decentralised commercial employment node outside the CBD, this created flash demand for this highly anticipated project,” noted Knight Frank’s head of research, Leonard Tay.
According to caveats lodged, J’Den sold 329 units in November at a median price of S$2,475 per square foot (psf); Hillock Green sold 132 units at a median S$2,110 psf and Watten House sold 109 units at a median S$3,199 psf. Together, these projects sold 570 units, or more than 70 per cent of total sales, in November.
Chia Siew Chuin, JLL’s head of residential research, said: “The sales numbers achieved by these new projects again demonstrate a high level of liquidity in the market, along with ample underlying demand from various types of homebuyers.
“Once again, despite prevailing market challenges and cautious sentiment, the combination of strong liquidity and buyers’ aspirations continues to translate into sales that support price levels whenever an attractive and compelling project is introduced.”
Watten House “was a surprise hit, given its hefty quantum of at least S$3 million per unit”, said Tricia Song, CBRE’s head of research for Singapore and South-east Asia.
https://i.imgur.com/ayQbBBF.png
Wong Siew Ying, PropNex Realty’s head of research and content, noted that the median transacted unit price in the suburban outside central region (OCR) jumped 12.7 per cent from October to S$2,340 psf in November, as sales at J’den propped up prices. “This is the first time that the monthly median unit price of non-landed new homes sold in the OCR has crossed the S$2,300-psf mark,” she said, and the higher prices would lift overall OCR prices in the fourth quarter.
Month on month, median prices in the rest of central region (RCR) rose by 5.4 per cent to S$2,551 psf in November, while the median price in the prime core central region (CCR) dipped by 1.4 per cent to S$3,195 psf.
Christine Sun, OrangeTee & Tie’s senior vice-president for research and analytics, pointed to a marked increase in prime sales in November. Some 150 new non-landed homes were sold in the CCR, the highest sales in the CCR since April 2023 when the government hiked up Additional Buyer’s Stamp Duty (ABSD) rates and doubled the rate for foreigners from 30 per cent to 60 per cent.
November also saw 60 non-landed homes transacted for at least S$5 million, with three deals above S$10 million at Watten House. This marked the highest monthly sales of properties costing at least S$5 million since May 2010, when 63 such units were sold, Sun said. No units were sold for above S$10 million in the previous four months.
The highest-priced condo transaction in November was at Watten House, where a 4,080 sq ft unit sold for S$14.5 million or S$3,545 psf, said Thomas Tan, Singapore Realtors Inc’s (SRI) chief executive officer.
Lee Sze Teck, Huttons Asia’s senior director for data analytics, also noted that a detached house in Mount Rosie was sold to a Singaporean for S$33.9 million during the month. More than 50 per cent of new homes sold in November are for S$2 million and above.
In the executive condominium (EC) segment, developers sold 16 new units in November, down from 21 in the previous month.
Foreign buying remained subdued. In total, 14 foreigners bought new residential properties in November, up from 13 in the month before, according to URA data. Out of the 14 sales, nine deals were in the CCR, four in the OCR and one in the RCR.
After November’s strong showing, “with no new launches in December amid the year-end festivities, 2023 looks set to end with the lowest new-home sales since 2008”, said CBRE’s Song.
Total new-home sales excluding ECs from January to November 2023 reached 6,316 units, some 9.6 per cent lower than in the year-ago period, said JLL’s Chia.
“This is despite a higher launch total of 7,515 units from January to November 2023, compared with 4,483 units correspondingly in 2022 and reflects both market concerns and buyers’ cautious stance,” she added.
For the whole of 2023, volume will not surpass the 7,099 new units (excluding ECs) sold in 2022, said PropNex’s Wong.
PropNex anticipates at least five launches in January – The Arcady @ Boon Keng and The Hillshore in the RCR, Hillhaven and Lentoria in the OCR, and Lumina Grand EC. These projects will offer more than 830 private homes and 512 new ECs.
CBRE’s Song thinks that private residential prices will rise 3 to 4 per cent in 2024, similar to 2023. New launch take-up and sentiment have softened significantly, she noted, and she expects the weakness to carry through into the first half of 2024, with global economic growth set to slow.
“However, things could turn brighter in the second half of 2024 as global demand for Singapore’s exports recover and interest rates cease their surge globally,” she added.
She sees 7,000 to 8,000 new homes being sold in 2024, up from this year but still below the five-year average of new developer sales of 9,763 units, between 2018 and 2022.
https://www.businesstimes.com.sg/property/new-private-home-sales-more-treble-november-highest-four-months