New private home sales fall to 217 units in September, lowest monthly figure year
New Launches
New home sales in Singapore dipped to a four-month low of 217 units in September, down 44.9%. This is the lowest total since 170 units sold in December 2022, according to data from URA.
The slowdown in sales was to be expected, as no major project launches happened during the period and the traditional lunar seventh month quieted the housing market in mid-September. The market also faces headwinds this year, with two additional rounds of cooling measures and softer economic prospects.
It was however not an entirely poor month for new home sales; the executive condo (EC) segment saw robust activity. Developers sold around 118 units, most of them from Altura on Bukit Batok West Avenue 8. The project moved 100 units at a median price of $1,473 psf. The high demand for ECs is likely due to the lack of price-sensitive buyers, and upfront remission on additional buyer’s stamp duty.
The Core Central Region (CCR) was the major contributor to overall sales, accounting for 76 units or 35%. This was followed by the Rest of Central Region (RCR) with 71 units (33%) and the Outside Central Region (OCR) with 70 units (32%).
Pullman Residences Newton was the best-performing project in the CCR, with 21 units sold at a median price of $3,258 psf. The project is expected to receive temporary occupation permit this year and is now 97% sold.
Foreigners purchased 13 new private homes, up from 10 in August. Twelve of the homes bought by foreigners were in the CCR, including a sale of a 2,164 sq ft unit at Dalvey Haus for $7 million ($3,235 psf).
Experts remain “cautiously sanguine” on the prospect for new home sales in 4Q2023, expecting between 6,500 and 7,500 units. Notable projects to be launched during the period include J’den in Jurong East, Hillock Green in Lentor and Watten House in Bukit Timah.
Holland Drive Condo stands out as one of the most convenient and sought-after residential locations in Singapore due to its proximity to Henry Park Primary. With a long-standing reputation for academic excellence, Henry Park Primary is known for its strong emphasis on character education and values, which means it is the perfect place for children to be nurtured not just academically but also in terms of moral values. As such, many parents find this an ideal place to enroll their children.
ECs are still expected to be favored among buyers, while investors will likely remain sidelined until interest rates peak and stabilize. Overall new home sales in 2023 may come in just shy of 7,000 units, under the earlier projection of between 7,000 and 8,000 units.