Developer sales improve with new offerings and rate cut lifting buyer sentiment
News release
15 October 2024
Private residential units sold by developers in September 2024
SINGAPORE, October 15, 2024 – On 15 October 2024, the Urban Redevelopment Authority (URA) released the data on developer sales for the month of September 2024.
A summary of the launches and sales is provided in the Appendix.
Ms. Chia Siew Chuin, Head of Residential Research, Research & Consultancy at JLL
谢岫君, 私宅市场研究部主管 (新加坡) commented:
Key Observations
New developer sales (excluding executive condominiums or ECs) rebounded in September 2024, rising 90% month-on-month (m-o-m) to 401 units from 211 in August, and up 84.8% from September 2023.
The debut of 8@BT and the release of new units from previously launched projects following the Hungry Ghost Month lifted September’s sales tally. 8@BT accounted for 36.2% of the total units introduced in the month. An additional 279 units (63.8% of total new units launched) across six ongoing projects were also released for sale in September – Pinetree Hill (120 new units), Hillhaven (100 units), Watten House (29 new units), The Myst (20 new units), Pollen Collection (8 new units) and The Hillshore (2 new units).
The larger-than-expected interest rate cut on 18 September may have also lifted buyer sentiment, drawing in previously hesitant buyers now emboldened by potentially more favourable financing conditions.
Year-to-date September, preliminary numbers show that developer sales have cratered to 3,077 units, marking a 42.3% year-on-year (y-o-y) decline and undercuts even the previous historical low of 3,845 units recorded during the same period in 2008 amid the global financial crisis (GFC) levels by 20.0%.
The confluence of prevailing factors – including restrictive market measures, high interest rates, inflation, weak economic conditions, limited launches – that has precipitated a primary market sales slump, underscores how the difficulties and increased complexities of today's primary housing market may have eclipsed the challenges faced during the previous GFC downturn.
On the other hand, secondary market remained active in September, with 1,095 caveats lodged. While the preliminary numbers show a 17.7% decline from August's 1,331 units, it is a 11.2% increase compared to September 2022's 985 caveats. The continued interest in resale properties is primarily driven by value-oriented local buyers, attracted by the price difference between new and resale homes, immediate occupancy needs, and limited major and compelling new project launches.
Sales by Market Segment
September’s new home sales were led by the Rest of Central Region (RCR), comprising 55.1% of total new private homes sales. RCR sales more than tripled m-o-m and y-o-y to 221 units. The new launch of 8@BT (sold 83 units at median price of $2,727 psf) and the release of 120 new units from the previously launched Pinetree Hill following the Hungry Ghost Month, collectively drove 70.1% of RCR sales. Other popular ongoing projects in the RCR included Tembusu Grand and The Continuum, which moved 32 units and 11 units, respectively in the month.
The Outside Central Region (OCR) saw new sales rise by 32.0% m-o-m and 135.7% from a year ago to 165 units in September 2024. This segment made up 41.1% of total developer sales during the month. Hillhaven saw an uptick, selling 46 units following a new release of 100 units, up from 14 in August. Other top-selling projects launched previously were Hillock Green which sold 22 units, Lentoria with 19 units and The Myst with 16 units.
New sales in the Core Central Region (CCR) declined by 25.0%, from 20 caveats in August to 15 deals in September. The decline is attributed to the lack of compelling new project launches and the continued impact of the April 2023 cooling measures. While eight previously launched projects recorded sales during the month, individual project sales remained low, with fewer than five units sold each. Examples include 19 Nassim and Klimt Cairnhill, with each selling three units.
Nationality by Residential Status
The proportion of private new home sales (excluding ECs) to non-permanent resident (PRs) foreigners fell to 1.5% in September from 2.4% in August, reflecting the continued impact of the April 2023 Additional Buyer’s Stamp Duty on foreign buyers. In absolute terms, only six transactions involved foreigners in September, up slightly from the five units in August, but far fewer than the 65 sales in April 2023. The six transactions were evenly split between the CCR and RCR.
Singaporean buyers’ share increased from 88.5% in August to 90.3% in September, the second highest in 2024. Singapore PRs made up 8.2% of September’s sales similar to 8.6% in August.
Sales Price
URA Realis data for September showed median price increases for non-landed private new homes across all regions. CCR median prices rose 5.0% m-o-m to $3,456 psf, likely due to some projects achieving higher median prices. For instance, the median sales price for 19 Nassim rose from $3,477 psf in August to $3,608 psf in September. Klimt Cairnhill also saw its median prices rise from $3,409 psf in August to $3,517 psf in September. RCR median prices increased 4.1% to $2,594 psf, mainly driven by 8@BT's launch. OCR saw a slight 0.2% rise in median prices to $2,129 psf.
In September, the distribution of private new home sales (excluding ECs) by price quantum showed:
30% of total new sales: $1.5 million to <$2 million range.
23% of total new sales: $2 million to <$2.5 million range.
19% of total new sales: $2.5 million to <$3 million range.
The private new home sales distribution by market segment and price quantum in September showed varying price preferences across different market segments. See Table A in Appendix.
CCR: 44% of new sales were in the $5 million to <$6 million range.
RCR: 29% of new sales were in the $1.5 million to <$2 million, followed by 22% in the $2.5 million to <$3 million and 15% in the $2 million to <$2.5 million bracket.
OCR: 33% of new sales were in the $1.5 million to <$2 million bracket and 34% in the $2 million to <$2.5 million range.
Outlook
The market outlook for the private home sakes market is cautiously optimistic for the remainder of the year. Despite an overhang of cooling measures and buyer hesitancy, we anticipate an improvement in sentiment and sales volume.
This is due to several key factors, including an increase in new project launches and the potential for more favourable financing conditions, which could strengthen confidence and expand the buyer pool. Brightening economic prospects, low unemployment and strong household balance sheets, further supports this outlook. The strong HDB flat resale price which rose 2.5% price q-o-q in 3Q24 (according to the flash estimates), should bolster upgrader interest in private properties, potentially further contributing to market growth.
Joining Meyer Blue and Norwood Grand, other potential launches in 4Q23 include Emerald of Katong, Nava Grove at Pine Grove, Bagnall Haus and The Chuan Park at Lorong Chuan.
Appendix
Table A – Proportion of Sales Transactions by Price Range in September 2024
| Price Range ($) | Core Central Region | Rest of Central Region | Outside Central Region |
|---|---|---|---|
| $1,000,000<=Price<$1,500,000 | - | 14% | 10% |
| $1,500,000<=Price<$2,000,000 | 6% | 29% | 33% |
| $2,000,000<=Price<$2,500,000 | 19% | 15% | 34% |
| $2,500,000<=Price<$3,000,000 | 6% | 22% | 15% |
| $3,000,000<=Price<$3,500,000 | 6% | 13% | 2% |
| $3,500,000<=Price<$4,000,000 | - | 5% | 5% |
| $4,000,000<=Price<$4,500,000 | - | 0% | - |
| $4,500,000<=Price<$5,000,000 | - | 0% | 1% |
| $5,000,000<=Price<$6,000,000 | 44% | 1% | - |
| $6,000,000<=Price<$7,000,000 | 6% | - | - |
| $14,000,000<=Price<$15,000,000 | 13% | - | - |
| Total | 100% | 100% | 100% |
Source: URA, JLL Singapore Research
The top-five selling private residential projects (excluding ECs) are listed in Table B below.
Table B - Top Selling Projects
| Project | Sub-market | Sold (units) | Median price ($ psf) |
|---|---|---|---|
| 8@BT | RCR | 83 | $2,727 |
| Pinetree Hill | RCR | 72 | $2,501 |
| Hillhaven | OCR | 46 | $2,120 |
| Tembusu Grand | RCR | 32 | $2,431 |
| Hillock Green | OCR | 22 | $2,224 |
Source: URA
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