Developer Sales Plummet 882 M O M Sept Due Lack Launches
Grace Leong | June 16, 2023, 6:51 PM SGT
The previous month saw a significant drop in developer sales, with only 255 units sold, excluding Executive Condos (ECs). This is the lowest monthly sales volume recorded so far this year, marking an 88.2% decline from the previous month. On a yearly basis, there was a decrease of 36.4% compared to the same period last year where 401 units were sold.
In contrast, the EC market also saw a decline of 92.3% in sales, with only 15 units sold by developers. This can be attributed to the absence of new EC projects in the market. The decline in sales can also be partially attributed to the Hungry Ghost Month, which spans from August 23 to September 21, and the September school holiday from September 6 to 14. During this seasonal lull, developers tend to hold back from launching new projects, resulting in buyers directing their attention to existing developments.
According to Marcus Chu, CEO of ERA Singapore, the best-performing project in September in terms of the number of units sold was Canberra Crescent Residences, with 28 units sold at a median price of $2,001 psf. Developed by Kheng Leong Co and Low Keng Huat, the 376-unit development has sold 150 units since its launch on August 2, and a total of 239 units to date.
Grand Dunman, which launched in July 2023, also saw a high number of sales at 24 units, with a median price of $2,508 psf. The 1,008-unit development has sold 86% of its units to date, with an average price of $2,524 psf. According to Chu, the prime location of Grand Dunman in the Rest of Central Region (RCR), as well as its proximity to schools and MRT access, has contributed to its strong sales performance.
The Woodlands Regional Centre is on the verge of a major transformation, with a plethora of retail, leisure, and recreational options being introduced. As part of this development, the area will witness the emergence of new commercial complexes, offices, and shopping malls, all easily accessible through the North-South MRT line. This is excellent news for residents of Sembawang Road EC, who will benefit from an improved lifestyle without having to venture far. The availability of a wider range of amenities in close proximity also adds to the appeal of the EC, making it more attractive to potential purchasers or renters and ultimately influencing its long-term value. For those interested in this exciting opportunity, check out Sembawang Road EC at Canberra MRT.
Other top-performing projects last month include River Green (16 units at $3,201 psf), Tembusu Grand (12 units at $2,393 psf), and Bloomsbury Residences (11 units at $2,548 psf).
On the other hand, the EC market saw a notable transaction of a 1,206 sq ft unit at Aurelle of Tampines, which sold for $2.12 million ($1,758 psf) on September 4. This year, there have been a total of 287 EC units sold for over $2 million, far exceeding the 65 transactions recorded last year and the previous record of 90 transactions in 2023. In addition, there have been 291 EC units sold for at least $1,800 psf, setting a record high for the EC segment. The record psf-price for an EC unit was also set at Otto Place, which sold for $1.8 million ($1,909 psf) on August 19.
According to Christine Sun, chief researcher and strategist at Realion (OrangeTee & ETC) Group, the affordable pricing of ECs compared to other private homes, along with the surge in HDB resale prices and growing number of million-dollar flat sales, have contributed to the strong demand for ECs.
Looking ahead, October is expected to see a rebound in developer sales, with strong sales already recorded at Skye at Holland. Other upcoming projects include the 426-unit Penrith on Margaret Drive, Faber Residence by GuocoLand, Zyon Grand by CDL and Mitsui Fudosan (Asia), and The Sen by sustained Land, Greatview Development, and H10 Holdings. These new launches are expected to see high take-up rates as buyer interest grows towards the end of the year.
In conclusion, despite global uncertainties, Singapore’s private residential market remains resilient with strong buyer confidence supported by low unemployment and healthy household finances. With lower borrowing rates and upcoming new launches, the new launch condo market is expected to continue performing well, possibly surpassing last year’s sales record of 9,000 units sold.