Property developers sold 228 new private residential homes (excluding executive condos) in June, a monthly increase of 2.2% from the 223 units moved in May, according to the latest developer sales statistics published by URA on July 15.
Factoring in developers' sales in June, 752 new private residential units were transacted in the second quarter of this year.
The number of private residential units sold by developers last month is 18% less compared to the 278 units moved in the same period last year. “Buyers remained highly selective and budget-conscious in view of the economic climate,” says Lee Sze Teck, senior director of data analytics at Huttons Asia.
Get the latest details on available units and prices for The LakeGarden Residences
The Lakegarden Residences was the best-selling private residential project last month, with 23 units sold at a median price of $2,119 psf.
Mohan Sandrasegeran, head of research and data analytics at SRI, says the launch of neighbouring Sora over the July 5-6 weekend likely rejuvenated interest in already-launched projects in the vicinity, such as The Lakegarden Residences, which was launched last August.
From January to May this year, The Lakegarden Residences sold only 22 units as most buyers held off on their purchase until after the preview of Sora, says Marcus Chu, CEO of ERA Singapore.
“The promise of a major development of the large white site in the Jurong Lake District by a consortium of five major developers could have given buyers the confidence to purchase a property in the JLD, and fuelled demand for new sale homes in the area,” Chu says.
He adds: “In addition to this, 19 of the 23 units sold at The LakeGarden Residences were 75 sq m and larger. This indicates a strong demand for larger-sized units for buyers, possibly HDB upgraders, looking for their own stay purposes.”
Other top-selling projects last month include The Botany at Dairy Farm, which sold 21 units at a median selling price of $1,979 psf; Tembusu Grand, which saw 20 units sold at a median price of $2,542 psf; and Hillhaven, which transacted 18 units at a median price of $2,124 psf.
Read also: OPINION: Can the market absorb the supply from this year’s GLS sites?
The first six months of this year marked the lowest half-year sales volume in the private residential new homes market since 2000, when URA records were available, based on data compiled by OrangeTee.
In 1H2024, developers moved only 1,916 new private residential homes (excluding ECs), which is 43.4% less than the 3,383 units sold in 1H2023. The sales figure for 1H2024 is also 54.6% less than the 4,222 units sold in 1H2022.
According to Christine Sun, chief researcher and strategist at OrangeTee, the sales figure for 1H2024 is lower than that recorded during the Global Financial Crisis when only 2,287 units were transacted in 1H2008. During Singapore’s Covid-19 lockdown in 1H2020, developers were still able to transact 3,862 units.
"Sales hit a record low in 1H2024 mainly because the number of units launched during this period was also at a new low. An estimated 1,938 units were launched for sale for the first half of this year. The previous low was in 1H2004 when 2,080 units were launched. When fewer new homes are launched, the number of sales inked is typically lower too," says Sun.
Despite a relatively lacklustre sales performance in the primary market over the first six months of this year, the luxury segment notched several noteworthy transactions from luxury projects like Skywaters Residences, 32 Gilstead and Watten House.
“These high-profile sales, although occurring at a moderate pace, underscore the strong interest and investment in luxury real estate within the CCR,” says Sandrasegeran.
Read also: Former Tang Dynasty City site in Jurong East earmarked for future homes
Looking ahead, developer sales numbers in July will pick up significantly on the back of major project launches during this month, such as Sora, Kassia, and The Green Collection, says Lee of Huttons.
Sora, a 99-year leasehold project on Yuan Ching Road in Jurong Lake District, sold 102 units during its sales launch over the July 5-6 weekend. This represents about 23% of the 440-unit development. The average price achieved was $2,160 psf.
Meanwhile, the 276-unit Kassia is expected to launch on Saturday, July 20. The freehold project is the final phase of the Flora Drive-Flora Road private residential enclave which was first launched three decades ago by Tripartite Developers – a joint venture between Hong Leong Holdings, City Developments and TID (itself a joint venture between Hong Leong Holdings and Mitsui Fudosan).
Meanwhile, The Green Collection features 20 strata titled townhouses that overlook Tanjong Golf Course in Sentosa Cove.
Anticipated launch-ready projects in 3Q2024 include 8@BT, the 847-unit Emerald of Katong, Ariana East Residences, Meyer Blue, the 366-unit Union Square Residences, the 348-unit Norwood Grand, and the 916-unit The Chuan Park.
“As the number of (launch-ready projects) gathers pace in 3Q2024, we expect sales volume in the primary market to also increase,” says Lee.
According to data compiled by ERA, the second half of this year could see about 17 new launch projects hit the market, introducing another 8,400 new private residential units.
However, as the upcoming lunar seventh month, also known as the Hungry Ghost Festival, draws closer, most developers might schedule their project launches to steer clear of this inauspicious period, which is typically believed to negatively affect buyer sentiment, says Sun of OrangeTee. This year, the Hungry Ghost Month will last from Aug 4 to Sept 2.
However, Leonard Tay, head of research at Knight Frank Singapore says with more new project options available, most buyers may become more selective and measured. He adds that sales volume will likely remain subdued until interest rates start to fall.
Still, new private home prices are on track to increase around 3% to 5% this year as a result of elevated land costs committed 12 to 18 months ago, as well as prevailing high construction and development costs, says Tay.
Knight Frank also expects the private residential new sale market to transact between 4,000 to 6,000 units in 2024, substantially lower than the 7,000 to 9,000 units the consultancy projected at the start of this year.
Check out the latest listings for The Lakegarden Residences properties