The Reserve Residences was the best-selling project in June, with 79 units sold at a median price of $2,646 psf (Picture: Samuel Isaaac Chua/The Edge Singapore)
SINGAPORE (EDGEPROP) - New private home sales tumbled in June, with developers selling just 278 new homes excluding executive condos (ECs). This represents a 73.2% fall from the 1,039 units sold in May, and 43% lower than the 488 units transacted in June last year.
This is the first decline in monthly sales recorded this year and the lowest thus far for 2023. It is also the lowest sales since December 2022 when 170 homes were sold by developers, says Tricia Song, head of research, Southeast Asia, at CBRE.
The drop comes on the back of a dearth of project launches during the month as well as the June school holidays. Developers, especially those who were preparing to launch larger-scale projects of more than 500 units, opted to time the launches in July to avoid the vacation period, notes Leonard Tay, head of research at Knight Frank Singapore.
As a result, only 31 new homes excluding ECs were launched in June. The figure is 98.1% lower than the 1,595 units launched in May and 92.2% lower y-o-y. “The 31 units launched in June 2023 is the all-time record lowest number of units launched since this monthly data series became available in 2007,” says Tay. New homes launched in June came primarily from Lavender Residence – a 17-unit boutique development along Lavender Street in District 8.
The June figures bring new home sales for 1H2023 to 3,463 units, a decline of 18% y-o-y compared to the 4,222 units sold over the corresponding period in 2022. In terms of launches, an estimated 3,736 new private homes have been launched for sale for the first half of the year, exceeding the 2,569 units in 1H2022, says Chia Siew Chuin, head of residential research, research and consultancy, at JLL.
For the third month running, new home sales were led by the Rest of Central Region (RCR). The region saw 147 new homes sold in June, down 82.6% m-o-m. In May, developers had sold 847 new homes, primarily driven by the launches of The Reserve Residences on Jalan Anak Bukit and The Continuum at Thiam Siew Avenue.
The Reserve Residences sustained its position as the best-selling residential project in June, with 79 units moved at a median price of $2,646 psf. In the RCR, Lavender Residence was the second best-selling project, with eight units sold at a median price of $1,972 psf.
In the Core Central Region (CCR), developers sold 112 new homes, a fall of 26.8% m-o-m. Top-selling projects include Leedon Green which moved 14 units at a median price of $2,812 psf, followed by Van Holland where 13 units were transacted at a median price of $2,692 psf.
CBRE’s Song notes that sales in the CCR were driven by projects nearing completion as developers offered discounts and ran marketing campaigns. The Atelier, located along Makeaway Avenue in Newton, moved 12 units in June at a median price of $2,663 psf and is now 95% sold. “Prices [at The Atelier] are about 8% to 9% lower than the median price of $2,916 psf when it first launched and sold four units in March 2021,” Song adds.
Meanwhile, the 69-unit Van Holland, located along Holland Road, is now fully sold after moving its last 13 units at a median price of $2,692 psf. The project is expected to receive its temporary occupation permit this month.
In the Outside Central Region (OCR), low unsold inventory hampered sales, with the region seeing just 19 units transacted – 51.3% lower m-o-m and its third straight monthly decline. The best-selling OCR project in June was Lentor Modern, which saw five units sold at a median price of $2,125 psf.
In the EC segment, developers sold 19 new units in June, marginally higher than the 17 units sold in May. North Gaia EC in Yishun led sales with 14 transactions at a median price of $1,280 psf.
New private home purchases by foreigners continued to fall in June, indicating the continued impact of cooling measures that came into effect on April 27, says Lee Sze Teck, senior director of research at Huttons Asia. Based on URA caveats, 13 new homes were purchased by foreign buyers last month (representing 4.7% of total new private home sales), compared to 30 transactions in May. In the CCR, only seven units were sold to foreign buyers last month, which is the lowest amount since February 2021 when six new homes were sold to foreigners, Lee says.
Eugene Lim, key executive office at ERA Realty Network, adds that foreigners may be seeking to obtain permanent resident status before buying a home. He notes that in June, permanent residents accounted for 10.8% of new private homes sold, up from 9.6% in April.
Despite the slump in June, sales are expected to see a strong rebound in July amid a number of major launches – the 408-unit The Myst on Upper Bukit Timah Road; the 598-unit Lentor Hills Residences on Lentor Hills Road; the 1,008-unit Grand Dunman on Dunman Road; and the 520-unit Pinetree Hill in the Pandan Valley-Pine Grove neighbourhood.
“The four projects have collectively sold over 1,100 units during their respective launches over the July 8 and July 15 weekends,” says Wong Siew Ying, head of research and content at PropNex Realty. She expects RCR transactions to continue leading developers’ sales in July, driven by sales at Grand Dunman and Pinetree Hill, while The Myst and Lentor Hill Residences will give a boost to the OCR.
Knight Frank’s Tay says the performance of the recent projects shows that homebuyer activity is “very much alive”, especially for suburban homes. “Demand for such units in the remaining months of 2023 will continue to be underpinned by home buyers purchasing for their own occupation, as household balance sheets remain healthy,” he says.
CBRE’s Song concurs, pointing out that new home sales could catch up in the second half of the year as more projects are launched. She estimates between 6,500 and 7,500 new private homes could be sold in 2023, on a par with the 7,099 units sold last year. Launches slated for the coming months include Lake Garden Residences on Yuan Ching Road, Altura EC in Bukit Batok, TMW Maxwell along Maxwell Road, Orchard Sophia on Sophia Road, and The Arden on Phoenix Road.
Check out the latest listings near Lavender Residence, The Reserve Residences, The Continuum, Leedon Green, Van Holland, The Atelier, Lentor Modern, North Gaia, The Myst, Lentor Hills Residences, Grand Dunman, Pinetree Hill, Orchard Sophia, The Arden