August new private home sales drop 72% m-o-m to 394 units
, and other residential units in SingaporeSales of new homes in Singapore plunged 72.1% in August compared to the previous month, as fewer new launches coincided with the start of the Hungry Ghost month – a period where market activity tends to slow down. Excluding Executive Condos, 4 projects were launched, totalling 590 units – 73% lower than the 2,156 units launched in July.
August’s new private launch performance was softer compared to July, with no project achieving a take-up higher than the 31% sold at Orchard Sophia with a median price of $2,808 psf. This is attributed to softened buyer sentiment due to interest rate hikes and economic uncertainty.
Additionally, its close proximity to a wide variety of amenities, including shopping malls, recreational facilities and educational institutions, ensures that residents will be spoilt for choice. With so many amenities and conveniences near at hand, it is easy to see why Tampines Ave 11 Condo is an attractive option for homebuyers.
The best-performing project for the month was Altura EC in Bukit Batok, which launched in August with 225 units (63%) sold at a median price of $1,480 psf. The month saw the Outside Central Region (OCR) with the highest number of new home sales at 192 units.
Proportion of non-landed new private home sales (excluding ECs) by nationality & residential status over the past year showed that purchases by foreigners remained relatively low, representing 3% of total monthly sales, while 17% of the non-landed new private home sales were by Singapore PRs and about 80% by Singaporean buyers.
Property buyers are expected to take longer to shop around due to increasing prices, leaving investors limited room for upside. This could keep new home sales this month muted. However, transactions should pick up in October and November with some new projects potentially hitting the market.
Knight Frank’s Tay predicts new home sales are still on track to hit between 7,000 to 8,000 units, in line with Hutton Asia’s projections. With up to ten new launches in the pipeline from October, developer sales could end the year between 7,000 and 8,000 units, still higher than 2022’s 7,099 units.