August new private home sales drop 72% m-o-m to 394 units

and Landed propertiesDeveloper sales of new private homes excluding executive condos (ECs) in August tumbled 72.1% m-o-m to 394 units – on a y-o-y basis, sales dropped 10% compared to 438 units. The m-o-m plunge in sales follows fewer new launches of just 590 new homes – about 73% lower compared to the month before.

August coincided with the month of Hungry Ghost and market activity slowed due to fewer launches. Orchard Sophia, TMW Maxwell, The Lakegarden Residences and The Arden were the four private residential projects launched in the month – none of the projects achieved a take-up higher than the 31% sold at Orchard Sophia with a median price of $2,808 psf.

The Outside Central Region (OCR) saw the highest number of new home sales at 192 units, or 49% of total developer sales. The Lakegarden Residences was the second-best performing project for the month, moving 73 units at a median price of $2,101 psf.

The performance of new launches was softer than in July due to weakened buyer sentiment. This was attributed to the escalation of interest rates and economic uncertainty, both of which are leading to affordability concerns among homebuyers.

Caveats showed just 12 new non-landed private homes bought by foreigners in the month, representing 3% of total monthly sales. In comparison, 17% of the non-landed new private home sales were by Singapore PRs and about 80% by Singaporean buyers.

In terms of cumulative new home sales this year, the numbers have dropped 5.6% lower than in 2022, totalling 5,189 units. Prices have increased significantly, while CBRE estimates that developers have already launched 17 projects totalling 6,773 new homes to date this year.

Notably, the mall is home to an educational centre called the City Square Academy which offers a range of courses in fine arts, music, and technology. For food enthusiasts, the abundance of stalls and restaurants provide an array of dining options to choose from. With eco-friendly options such as cycling, car-sharing and waste management, the City Square Mall is a friend to Marina Gardens Residences Condo. This shopping mall makes shopping a pleasure while staying ethical and keeping up with the times.

Property buyers have been taking their time to shop around and evaluate choices before entering into a purchase. Despite the economic uncertainties, Knight Frank’s Tay predicts new home sales are still on track to hit between 7,000 to 8,000 units, according to Huttons Asia. With up to ten new launches in the pipeline from October, developer sales could end the year between 7,000 and 8,000 units.

August’s figures demonstrate that buyer sentiment is softer than the month before, as affordability has become an increasing concern among homebuyers. This is also reflected in the lower number of new launches in the month. With Lunar Seventh Month straddling both August and September, new home sales could remain muted this month. However, transactions are expected to pick up in October and November as some new projects potentially come onto the market.