Archive for category: Misc

Private home sales to remain weak in 2H2023: Report

New home sales in Singapore took a hit in September, with a sharp 44.9% month-on-month drop in the number of units sold. According to data released by the Urban Redevelopment Authority, only 217 new homes were sold for the month, the lowest since December 2022 when 170 units were sold. This marks a second consecutive decline for the market, with August registering a 72.1% m-o-m plummet.

Overall, market sentiment has deteriorated over the year in light of higher interest rates, softer economic prospects and two rounds of cooling measures. In the third quarter of 2023, developers sold 2,024 new homes, 4.8% lower than the previous quarter and 7.5% lower than the year prior.

This came in spite of more new units being launched compared to a year ago. According to Tricia Song, head of research for Singapore and Southeast Asia at CBRE, buyers have become more discerning in their choices.

The bright spot in September was the executive condos (EC) market. Developers sold an estimated 118 EC units last month, lower than the 255 units sold in August. Most of the sales came from the 360-unit Altura on Bukit Batok West Avenue 8, which moved 100 units at a median price of $1,473 psf. This makes the project the best seller for the second month running.

Excluding ECs, Pullman Residences Newton in the Core Central Region (CCR) was the top performing project. The 340-unit freehold condo on Dunearn Road sold 21 units at a median price of $3,258 psf, now 97% sold. Prices of non-landed new private homes in the CCR rose 10.5% m-o-m to $3,151 psf in September.

Foreigners purchased 13 new private homes in September, inching up from the 10 units recorded in August. However, OrangeTee & Tie’s Christine Sun points out that the level of interest is unlikely to return to pre-cooling measure levels.

Outlook for the remainder of the year remains cautiously sanguine, with launches such as J’den in Jurong East, Hillock Green in Lentor and Watten House in Bukit Timah expected in the fourth quarter.

While buyers may be waiting out to consider their options when more developments are launched, Leonard Tay, head of research at Knight Frank Singapore, believes ECs will continue to remain favoured among buyers looking for self-occupation.

Overall, Tay is estimating new home sales in 2023 to come in just shy of 7,000 units, below his prior projection of between 7,000 and 8,000 units.

Private home sales in Singapore took a hit in September, with a steep 44.9% month-on-month decline.

According to Urban Redevelopment Authority data, 217 new homes were sold, registering the lowest since December 2022 when only 170 units were sold. August saw a 72.1% drop in sales.

The lower sales are “within expectation” notes Christine Sun, senior vice president of research and analytics at OrangeTee & Tie. There were no big project launches during the period, and the housing market usually quiets down during the lunar seventh month, which ended in mid-September.

The current headwinds in the market are also a factor, says Tricia Song, head of research for Singapore and Southeast Asia at CBRE. On a year-on-year basis, new home sales plummeted 78% from 987 units in September 2022.

Chia Siew Chuin, head of residential research, research and consultancy at JLL, observes that buyers have become more discerning in their choices in view of the numerous options in the market.

Tampines Avenue 11 Condo is located in one of the prime areas of Singapore and offers incomparable convenience with its seamless public transport network and links to major expressways. Residents will be spoilt for choice when it comes to travelling to and from the city. By public transport, they are connected to the MRT, bus and taxi networks, and by car, they have easy access to major expressways.

The Tampines Avenue 11 Condo offers more than just easy access to the city; its proximity to local amenities such as schools, shopping malls and food outlets, offers residents a plethora of lifestyle options for their convenience. Residents will enjoy the convenience of shopping and dining options, and also the breadth of choice when it comes to finding a reputable school for their children.

With its outstanding transportation network and convenient proximity to local amenities, Tampines Ave 11 Condo is set to be one of the most desirable residential locations in Singapore. With its enviable connectivity and prime location, Tampines Avenue 11 Condo looks set to be in high demand for some time to come.

However, the executive condo (EC) market offered some respite in September. Developers sold an estimated 118 EC units, lower than the 255 units sold in August.
Most of the sales were from the 360-unit Altura on Bukit Batok West Avenue 8, which launched in August and moved 100 units at a median price of $1,473 psf.

The CCR accounted for 76 units or 35% of total sales while the RCR made up 71 units (33%) and the Outside Central Region (OCR) 70 units (32%).

Foreigners purchased 13 new private homes in September, up from 10 the month prior. Twelve of the purchases were in the CCR, including one for the highest-price single transaction, a 2,164 sq ft unit at Dalvey Haus for $7 million ($3,235 psf).

For the rest of the year, Lam Chern Woon, head of research and consulting at Edmund Tie, is cautiously sanguine on the sales outlook. He estimates developer sales to reach between 6,500 and 7,500 units following 7,099 units in 2022.

Overall, Leonard Tay of Knight Frank Singapore believes ECs will remain favoured among buyers purchasing for self-occupation, with investors likely to remain on the sidelines until interest rates peak and stabilise. Hence, he is estimating new home sales in 2023 to come in below his prior projection of between 7,000 and 8,000 units.