Developer sales jump 150% m-o-m in July, propelled by Kassia and Sora
By Nicholas Lam
/ EdgeProp Singapore |
Freehold project Kassia was the best-selling project of July with 154 units sold. (Picture: Hong Leong Holdings)
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The month of July saw 571 new private homes (excluding executive condos or ECs) sold, which is a 150% m-o-m spike from the 228 units in June. In fact, June’s sales was almost a record low this year, just slightly higher than the previous month, when 223 new homes were sold in May.
According to Leonard Tay, head of research at Knight Frank Singapore, new private home sales averaged 357 units a month so far this year. Comparatively, 2023 averaged 556 units sold monthly, 2022 averaged 616 units sold monthly, and 2021 averaged 1,114 units sold monthly. Even 2020 recorded a higher monthly average of 861 units sold during a pandemic-led recession.
This brings the total number of new private homes sold to 2,460 units (January to July) this year, 48.7% lower y-o-y from 4,796 units over the same period in 2023. July's sales numbers are an optimistic reversion from 1H2024, which hit a record low for half-yearly sales of 1,889 units sold. The previous all-time-low for half-yearly sales was recorded in 1H2008 during the Global Financial Crisis when just 1,977 units were sold.
Get the latest details on available units and prices for Kassia
The freehold Kassia was the top-seller last month, with 154 units sold at a median price of $2,049 psf. The project is about 55.8% sold to date.
Based on caveats lodged, 152 units sold at Kassia were priced at the sweet spot of $2 million and below. Lee Sze Teck, senior director of data analytics, Huttons Asia, estimates that more than 70% of Kassia’s one-bedroom and one-plus-study units have been sold, with the majority selling for $1 million or below.
Latest sales transactions at Kassia, tabulated by EdgeProp's EP Buddy. (Source: URA, EdgeProp Singapore)
According to Lee, the availability of one-bedroom units has dwindled since URA implemented a minimum dwelling size in 2018.
Kassia is also the final project in the Flora Drive-Flora Road enclave by Tripartite Developers, a joint venture comprising of Hong Leong Holdings, Singapore-listed City Developments Ltd (CDL) and TID (a joint venture between Hong Leong and Mitsui Fudosan).
The next best-seller is Sora, with 103 units sold at a median price of $2,152 psf. It is about 23.4% sold to date.
Again, the one-plus-study and two-bedroom units were the most popular units, notes Huttons’ Lee, with more than 90% sold for $2 million or below.
Latest sales transactions at Sora, tabulated by EdgeProp's EP Buddy. (Source: URA, EdgeProp Singapore)
Developed by a consortium led by SingHaiyi that includes KSH Holdings and Ho Lee Group, the 99-year leasehold development is located in the Lurong Lake District and boasts a 300m frontage of Jurong Lake Gardens.
"The momentum generated by Sora likely created a spillover effect that benefited The Lakegarden Residences, resulting in the sale of 41 units at a median price of $2,212 psf," says Mohan Sandrasegeran, head of research & data analytics at SRI. He suggests that the interest
surrounding Sora's launch positively influenced buyer decisions, driving demand and sales for nearby developments.
With the launch of Sora and Kassia, which are both in the suburbs, the proportion of sales in the Outside of Central Region (OCR) therefore increased to 77.8% last month, an increase from 56.1% in June.
Sales in the city fringe or Rest of Central Region (RCR) made up 18.6% of the total in July, while the prime or Core Central Region (CCR) accounted for just 3.7%.
Midtown Modern recorded the highest transacted price in the month of July with the sale of a 1,808 sq ft, four-bedroom units that fetched $6.6 million ($3,671 psf).
The Hungry Ghost Month (from August 4 to September 2, 2024), generally considered an inauspicious month, Huttons’ Lee does not expect any new project launches this month. New home sales could therefore test new lows, sinking to the 150 to 250 unit range, he estimates.
In September, new project launches include the 158-unit 8@BT along Bukit Timah Link by Bukit Sembawang Estates, the 226-unit Meyer Blue on Meyer Road in prime District 15 by UOL Group and Singapore Land Group, and the 366-unit Union Square Residences along Havelock Road by CDL.
Marcus Chu, CEO of ERA Singapore, foresees a signigicant increase in new launches in 2H2024, “collectively, the new launches scheduled for 3Q 2024 will introduce an estimated total of 2,512 units. Alongside a further 4,200 units scheduled for 4Q 2024, this should significantly surpass the 2,495 units launched in 1H 2024.”
New home sales could end the year with 5,500 units, but prices are still expected to increase by about 4%, says Huttons. Knight Frank's Tay concurrs, revising his initial prediction of between 7,000 to 9,000 units transacted down to between 4,000 to 6,000 units.
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