Developer sales expected to rebound after 6.5% decline in October

Nov 16, 2023

NEW private home sales remained muted for the month of October with 203 units sold, down 6.5 per cent from the previous month and 35.4 per cent year on year.

This figure, which excludes executive condominiums (ECs), represents the lowest monthly sales in the year to date. It also represents the lowest monthly sales since December 2022, when 170 units were sold for the month.

According to data released by the Urban Redevelopment Authority (URA) on Wednesday (Nov 15), October’s developer sales came mainly from the Rest of the Central Region (RCR) with 82 units sold.

This was followed by a take-up of 76 units in the Outside Central Region (OCR), followed by 45 units in the Core Central Region (CCR).

No new launches took place in the RCR for the month. There were 47 units launched in the OCR, and another seven in the CCR.

Lee Sze Teck, Huttons’ senior director of data analytics, noted that the top three best-selling projects in the RCR for October 2023 were The Reserve Residences with 23 units, Grand Dunman with 15 units, and Pinetree Hill with nine units.

He estimated that sales in the RCR made up 40.4 per cent of total October 2023 volumes, with the OCR accounting for 37.4 per cent and the CCR making up 22.2 per cent.

Attributing the subdued sales volumes in October to a dearth of major launches for the month, Lee reckoned buyers were “waiting for hot launches” in November with the anticipated launches of Hillock Green, J’den and Watten House being cases in point.

More than half, or 60 per cent of total transactions for the month, were priced from S$2 million to over S$5 million as more high-value properties were sold across all regions, noted Lee.

The most expensive unit in October was a penthouse unit in One Pearl Bank, sold to a Singaporean for S$7.1 million.

Lee of Huttons said he believed that Singapore’s property market will end the year with good results in the last few major launches.

November sales could come within the range of 700 to 800 units, he said, though December sales could be slower with sales below 200 units.

“With 5,329 units sold in the first nine months of 2023 and potentially another 1,000 to 1,100 units in Q4 2023, developers are likely to end 2023 with sales between 6,000 and 6,500 units. Prices are likely to increase in Q4 2023 and might exceed 5 per cent for the whole year,” he surmised.

Likewise, representatives of SRI and OrangeTee & Tie expect new home sales for the month of November to outperform October figures, driven by strong sales contributions from J’den and Hillock Green.

SRI’s head of research and data analytics Mohan Sandrasegeran said these two new developments have “captured the attention of prospective homebuyers due to their unique offerings and strategic locations”.

“This positive shift in sentiment can be attributed to the availability of appealing options, as more new launches hit the market. As these options become more diverse, it encourages those on the sidelines to take a more proactive stance in considering the opportunities presented by the evolving new launch landscape.”

In particular, OrangeTee & Tie’s deputy chief executive Justin Quek underscored a “strong buying interest” at J’den, which he attributed to the project’s “outstanding features”.

“Hillock Green is also a good affordable option for buyers who are keen to leverage its close proximity to Lentor MRT station and the Lentor Modern retail mall. The project is also conveniently located near schools like Anderson Primary School and CHIJ St Nicholas Girls’ School.”

In view of strong sales at J’den, OrangeTee & Tie now expects 6,600 to 7,100 new homes to be sold for the whole of 2023, or around the 7,099 units sold in 2022.