The 158-unit 8@BT was the best-selling project of September, moving 83 units at a median price of $2,727 psf. (Photo: Samuel Isaac Chua / EdgeProp Singapore)
Developers sold 401 new private homes excluding executive condos (ECs) in September, based on data released by URA on October 15. This marks a 90% m-o-m increase over the 211 units transacted in August and an 84.8% y-o-y growth over the 217 units sold in September 2023.
According to Lee Sze Teck, senior director of data analytics at Huttons Asia, the rebound in private home sales was largely due to the resumption of new project launches following the lunar seventh month – a period seen by some as an inauspicious time to purchase a home.
Developers launched 437 units for sale in September 2024, a 60.7% m-o-m rise from the 272 units launched in August 2024 and over five times higher than 68 units launched in September 2023.
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“The post-Hungry Ghost Festival period often sees a revival in sentiment, allowing developers to capitalize on renewed interest and launch fresh projects to meet demand,” says Mohan Sandrasegeran, head of research & data analytics at SRI.
The first new project launched after the lunar seventh month, 8@BT was also the best-selling project of September. The 158-unit condo developed by Bukit Sembawang Estates along Bukit Timah Link moved 83 units at a median price of $2,727 psf during the month. The project is located in the Rest of Central Region (RCR).
Almost 60% of units sold at 8@BT were priced at $2 million and below, a comfortable budget for many buyers, says Lee. He adds that one- and two-bedroom units at 8@BT adopt an efficient layout with minimal corridor space and no balcony, which could have also contributed to the project’s popularity.
Sandrasegeran suggests that the project could have benefitted from pent-up demand following the lack of new launches in August as well as a boost in buyer confidence following a larger-than-expected interest rate cut by the US Federal Reserve.
Pinetree Hill, also located in the RCR, was the second best-selling project for September, with 72 sold at a median price of $2,501 psf. This follows the phase 2 launch of the project with 120 units released for sale last month. The 520-unit condo was initially launched in July 2023 with 400 units released for sale under phase 1.
“Interest in 8@BT fuelled fresh interest in Pinetree Hill, also located in D21. In total, Pinetree Hill sold 72 units in September alone, compared to the 80 units sold between January to August this year,” observes Marcus Chu, CEO of ERA Singapore.
He points to Pinetree Hill’s lower median price and shorter completion times as factors that could have spurred buyers to the project. Pinetree Hill’s median price of $2,501 psf is 8.2% lower compared to 8@BT’s median price of $2,727 psf.
Including sales in September, developers have sold 1,188 new homes excluding ECs in 3Q2024, 63.9% higher q-o-q but down 39% y-o-y. A total of 3,077 new homes have been sold between January and September, 42.3% lower y-o-y.
RCR projects accounted for 221 new unit transactions, or 55.1% of all new private home sales last month. It was followed closely by the Outside Central Region (OCR) which recorded 165 units sold by developers, or 41.1% of sales.
OCR sales were underpinned by already-launched projects including Hillhaven, which moved 46 units at a median price of $2,120 psf, and Hillock Green, which sold 22 units at a median price of $2,224 psf.
In the Core Central Region (CCR), developers sold 15 units, accounting for just 3.7% of the total sales figure for September. This is the lowest monthly new home sales in the CCR since 13 units were sold in January 2009, notes Wong Siew Ying, head of research and content at PropNex Realty.
The low sales is due to limited new launches in the CCR since additional buyer’s stamp duty rates were hiked in April 2023, adds Wong. The best-selling projects in the CCR last month were Nassim Hill and Klimt Cairnhill, selling three units each at a median price of $3,608 psf and $3,517 psf respectively.
Read also: Private home prices drop 1.1% q-o-q in 3Q2024: URA flash estimates
Despite the lack of new launches, the CCR saw the highest transacted new private home sale by absolute price for the month of September. Freehold condo 32 Gilstead located on Gilstead Road recorded the sale of a 4,209 sq ft, four-bedroom unit for $14.6 million. According to URA caveats, the buyer was a Singapore permanent resident (PR).
In terms of buyer profile, Singaporeans and PRs accounted for over 98% of new home sales in September. Foreigners made six purchases, similar to the month before. Three of the properties were in the CCR, while the remainder were in the RCR, says Huttons’ Lee.
PropNex’s Wong expects September’s boosted sales momentum to carry into October and November. “It seems likely that new private home sales, which have been fairly muted this year, could turn a corner in these last few months of 2024”, she says.
Freehold RCR project Meyer Blue saw 114 (over 50%) of its 226 units sold at an average price of $3,260 psf on its Oct 5 launch day. It is the third new project to achieve a take-up rate of at least 50% during its launch weekend since July, notes Wong. The other two projects were Kassia (52%) and 8@BT (53%).
Norwood Grand, City Development’s 348-unit condo in Woodlands, will start booking sales on Oct 19. Together with Meyer Blue, the projects will push developers’ new home sales to over 500 units in October, Huttons’ Lee estimates.
Meanwhile, a bumper slate of new launches is anticipated for the year-end period, including the 846-unit Emerald of Katong, the 916-unit Chuan Park, the 552-unit Nava Grove, the 66 Union Square Residences and the 508-unit Novo Place EC. “These projects have attractive attributes and will likely tap different segments of demand in the market, including first-time homebuyers, HDB upgraders, and investors,” Wong adds.
Wong is projecting new home sales excluding ECs to clock in between 4,500 and 5,500 units for the full year. “With a varied pipeline of new launches to come, and buyers returning to pick up units at previously launched projects, we are optimistic that developers’ sales could finish the year on a brighter note, compared with the sluggish performance we have observed earlier in 2024.
Huttons’ Lee anticipates developers to sell up to 5,000 new homes in 2024, while prices are expected to stay stable, rising 2% for the full year.
Meanwhile, ERA’s Chu is predicting a higher range of between 5,500 and 6,500 new homes sales by year’s end.
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