Developers Sell 228 New Private Homes June And New Private Home Sales Reach Record Low 1H2024
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In the month of June, 228 new private residential homes (excluding executive condos) were sold by property developers, representing a 2.2% increase from the 223 units sold in May. According to the latest data published by the Urban Redevelopment Authority (URA) on July 15, a total of 752 new private residential units were transacted in the second quarter of this year.
When looking at the figures for the month of June specifically, it is worth noting that the number of units sold by developers was 18% lower compared to the same period last year, where 278 units were sold. Speaking on the current market climate, Lee Sze Teck, senior director of data analytics at Huttons Asia, suggests that buyers are being cautious and price-sensitive amidst the current economic conditions.
For the latest information on available units and prices for The LakeGarden Residences, please refer to the list below. The Lakegarden Residences was the top-selling private residential project last month, with 23 units sold at a median price of $2,119 per square foot (psf). Mohan Sandrasegeran, head of research and data analytics at SRI, believes that the recent launch of neighbouring project Sora over the July 5-6 weekend may have generated renewed interest in previously launched projects in the same area, such as The Lakegarden Residences, which was launched in August last year.
Marcus Chu, CEO of ERA Singapore, explains that from January to May this year, The Lakegarden Residences had only managed to sell 22 units as most buyers were waiting for the preview of Sora before making a purchase. He adds that the upcoming major development for the large white site in the Jurong Lake District by a group of five major developers may have instilled confidence in buyers to purchase a property in the area, driving up demand for new private residential units. Furthermore, 19 out of the 23 units sold at The LakeGarden Residences were 75 square metres and larger, indicating a strong demand for larger units among buyers, possibly those upgrading from HDB flats looking for a place to live in themselves.
Other top-selling projects for the month of June include The Botany at Dairy Farm, which sold 21 units at a median price of $1,979 psf; Tembusu Grand, which moved 20 units at a median price of $2,542 psf; and Hillhaven, which saw 18 units transacted at a median price of $2,124 psf.
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The first half of this year saw the lowest sales volume for new private residential homes since 2000, according to data compiled by OrangeTee. In the first half of 2024, only 1,916 new private residential units (excluding executive condos) were sold, which is a 43.4% decrease from the 3,383 units sold in the first half of 2023. Furthermore, this figure is also 54.6% lower than the 4,222 units recorded in the first half of 2022.
According to Christine Sun, chief researcher and strategist at OrangeTee, the sales figure for the first half of this year is lower than that recorded during the Global Financial Crisis, where 2,287 units were transacted in the first half of 2008. During the Covid-19 lockdown in the first half of this year, developers were still able to transact 3,862 units.
“The sales figure for the first half of this year hit a record low mainly due to the low number of units launched during this period. An estimated 1,938 units were launched for sale in the first half of this year. The previous record low was in the first half of 2004, where 2,080 units were launched. When fewer new homes are launched, the number of sales inked is typically lower as well,” explains Sun.
Despite a relatively slow sales performance in the primary market in the first half of this year, the luxury segment saw several noteworthy transactions from projects such as Skywaters Residences, 32 Gilstead, and Watten House. According to Sandrasegeran, these high-profile sales, although occurring at a moderate pace, highlight the strong interest and investment in luxury real estate in the Core Central Region (CCR).
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Looking ahead, the developer sales numbers for July are expected to be significantly higher, thanks to major project launches such as Sora, Kassia, and The Green Collection. According to Huttons’ Lee, Sora, a 99-year leasehold project on Yuan Ching Road in the Jurong Lake District, managed to sell 102 units in its sales launch over the July 5-6 weekend, representing about 23% of the total 440-unit development. The average price achieved was $2,160 psf.
Meanwhile, the 276-unit Kassia is expected to launch on Saturday, July 20. The freehold project is the final phase of the Flora Drive-Flora Road private residential enclave which was first launched three decades ago by Tripartite Developers – a joint venture between Hong Leong Holdings, City Developments, and TID (itself a joint venture between Hong Leong Holdings and Mitsui Fudosan). The Green Collection offers 20 strata-titled townhouses that overlook Tanjong Golf Course in Sentosa Cove.
Other projects expected to be launched in the third quarter of this year include 8@BT, the 847-unit Emerald of Katong, Ariana East Residences, Meyer Blue, the 366-unit Union Square Residences, the 348-unit Norwood Grand, and the 916-unit The Chuan Park. “With more launch-ready projects in the third quarter, we expect sales volume in the primary market to increase as well,” says Lee.
According to the data compiled by ERA, the second half of this year could see as many as 17 new project launches, introducing another 8,400 new private residential units to the market. However, as the upcoming seventh month of the lunar calendar, also known as the Hungry Ghost Festival, approaches, most developers may choose to postpone their project launches to avoid this traditionally inauspicious period, which is believed to negatively affect buyer sentiment. This year, the Hungry Ghost Month will last from Aug 4 to Sept 2.
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However, Leonard Tay, head of research at Knight Frank Singapore, believes that with more new project options available, buyers may become more selective and measured in their purchases. He adds that sales volume will probably remain low until interest rates start to fall. Despite this, new private home prices are expected to increase by around 3% to 5% this year due to high land costs agreed upon 12 to 18 months ago, as well as the prevailing high construction and development costs. Knight Frank also anticipates that the primary market for new private home sales will transact between 4,000 to 6,000 units this year, significantly lower than the 7,000 to 9,000 units projected at the beginning of the year.
To find out more about available units at The Lakegarden Residences, please refer to the list below.