Developer sales slip 6.5% month-on-month in October with no new launches

According to the latest real estate statistics released by the Urban Redevelopment Authority (URA), new private home sales plunged to just 203 units last month amidst an absence of major new project launches. This marked the lowest monthly sales tally year-to-date, falling 6.5% month-on-month.

Market observers had anticipated this brief downturn, as most buyers remained on the sidelines last month waiting for blockbuster launches in November... such as the highly anticipated debuts of Hillock Green and J'den.

The lull in new launches in October mirrors a similar situation in the same period last year, when the only notable launch was the 639-unit Copen Grand executive condominium. On a year-on-year basis, developers' sales in October 2023 were down 35.4% compared to the 312 units sold in the corresponding period last year.

The pacing of new launches in 2023 appears to be a strategic move by developers. Developers have carefully timed their launches to maximise impact and ensure optimal sales performances. This approach helps prevent buyer fatigue and gives prospective buyers ample time to evaluate their available options.

Consequently, last month's new private residential sales were driven by previously launched projects. Projects in the Rest of Central Region (RCR) contributed 40.4% to total developer sales last month.

Top-selling projects

Based on the total number of units sold last month, the top-selling project in the RCR was The Reserve Residences, which moved 23 units at a median price of $2,361 psf, followed by Grand Dunman with 15 units sold at a median price of $2,452 psf.

However, the project that moved the highest number of units last month was Lentor Hills Residences, a 598-unit suburban development along Lentor Hills Road in the Outside Central Region (OCR). Last month, the 99-year leasehold condominium moved 24 units at a median price of $2,116 psf. This means approximately 70% of the project has been sold within four months of its launch in July.

Other projects in the OCR, including Lentor Modern and The Arden, collectively accounted for 37.4% of developers' sales last month.

Meanwhile, sales in the Core Central Region (CCR) slumped to their lowest level in more than three years last month, dropping 40.8% month-on-month with just 45 units sold. The best-selling project in this sub-market was Klimt Cairnhill, which sold 11 units at a median price of $3,509 psf.

Key factors behind the slower sales in the CCR include the depletion of unsold inventory and limited new supply, as developers have largely held off on launching new CCR projects following the hike in Additional Buyer's Stamp Duty (ABSD) rates in April 2023.

In the first 10 months of this year, developers launched around 7,300 new units, up 69.3% from the same period last year. Meanwhile, statistics indicate that homebuyers purchased 5,753 units between January and October 2023, down 17.3% compared to the same period in 2022.

Looking ahead

This year's private home sales figures are likely to be buoyed by strong take-up rates from the launches of J'den and Hillock Green.

Launched on 11 November, J'den sold 323 units (88% of total units), making it the best-selling new launch year-to-date, with an average selling price of $2,451 psf.

The 474-unit Hillock Green was also launched on 11 November. Buyers snapped up 131 units (27.6%) at an average selling price of $2,108 psf.