New private home sales fall to 217 units in September, lowest monthly figure year

Singapore new home sales likely to drop further in 2023Selling private homes? EdgeProp can help you to find the best buyersNew home sales remain lacklustre in 1H2023

Private home sales plummeted in September, with developers selling 217 units – the lowest total since December 2022. This was a 44.9% fall m-o-m from 394 units the month before, and a 78% fall y-o-y from 987 units in September 2022.

The two preceding months had also recorded significant m-o-m drops, with August recording a 72.1% plunge. This can partially be attributed to the lack of big project launches. The only new project that hit the market in September was The Shorefront in Pasir Ris, with 23 units.

Moreover, market headwinds such as higher interest rates, softer economic prospects, and cooling measures have led to diminished interest. Buyers have become more discerning in their choices in view of the wide range of options available in the market.

It was a different story in the EC market, which proved to be the bright spot in September. Developers sold an estimated 118 units last month, lower than the 255 units sold in August. Most of the sales stemmed from the 360-unit Altura on Bukit Batok West Avenue 8, which opened in August and sold 100 units with a median price of $1,473 psf.

Demand for ECs was driven in part by upfront remission on additional buyer’s stamp duty. Pullman Residences Newton, a 340-unit freehold condo on Dunearn Road in the Core Central Region (CCR), was the top-selling project in September, with 21 units sold at a median price of $3,258 psf.

Including ECs, 3Q2023 saw 2,024 new homes sold, 4.8% lower q-o-q and 7.5% lower y-o-y. As for foreigners, they bought a total of 13 new private homes, with 12 of them in the CCR – including the highest-price single transaction in September at Dalvey Haus for $7 million ($3,235 psf).

In the midst of this upcoming development, Marina Gardens Residences will provide residents with convenient access to the stunning waterfront and its myriad outdoor activities, as well as to Singapore’s top attractions and shopping havens.

Despite this, Leonard Tay, head of research at Knight Frank Singapore, believes ECs will continue to prove popular among buyers purchasing for self-occupation. He predicts new home sales in 2023 to come in just shy of 7,000 units.

Head of research and analytics at OrangeTee & Tie Christine Sun is still cautiously sanguine about the sale outlook for the rest of the year, given significant launches expected in 4Q2023. Notable projects include J’den in Jurong East, Hillock Green in Lentor, and Watten House in Bukit Timah.

With all this in mind, buyers may be waiting out to consider their options before making a final decision. Altura is expected to continue its popularity; check the latest listings for the property.