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About August Home Sales Plunge Amid Lack of New Launches | In August, Singapore’s private home market experienced a significant decline in sales due to the absence of new project launches. Developers sold 208 new homes, excluding executive condominiums (ECs), representing a 63.6% drop compared to July’s 571 units sold. Including ECs, the drop was 59.9%, with sales falling from 608 units in July to 244 units in August. This decrease is attributed to the seventh month of the lunar calendar, which developers typically avoid for launching new projects.
Impact of No New Launches in August (August Home Sales Plunge)
The units sold in August came from previously launched developments. Only 272 new homes were released for sale, marking a 55.8% drop compared to the 616 units launched in July. The previous month’s figures had been boosted by the launches of Sora in the Jurong Lake District and Kassia in Changi.
On a year-on-year (y-o-y) basis, the market also saw a decline of 47.2% compared to August 2023, when 394 new homes were sold. Year to date, developers have sold 2,668 units, down 48.6% compared to the 5,190 units sold during the same period last year. August 2024’s sales were the lowest recorded for this month since 2008, when 325 units were sold.
Weak Buyer Sentiment Persists
According to Tricia Song, head of research at CBRE for Southeast Asia, this drop in sales reflects the tentative stance among home-buyers amid weak economic conditions and high interest rates. Song notes that 2024 is likely to be the weakest year for new home sales since 2008, when 4,264 units were sold. The cautious market sentiment has been in place since late 2023.
Read Also: Developer Sales Surge in July, Led by Kassia and Sora
Despite the drop in volume, property prices have continued to rise. Wong Siew Ying, head of research at PropNex Realty, observed that the median transacted price for new private homes increased by 42% month-on-month (m-o-m), from S$1.7 million in July to nearly S$2.4 million in August. The rise is attributed to a higher proportion of units sold at higher price levels. In contrast to July, when 41% of homes sold were priced below S$1.5 million, only 5.9% of sales in August were below that price.
OCR Leads Market Sales (August Home Sales Plunge)
August’s sales were concentrated in the city fringe and suburban areas, considered more affordable and well-located. Tembusu Grand, a 638-unit condo along Jalan Tembusu, was the top-selling project, moving 30 units at a median price of S$2,455 psf. The Rest of Central Region (RCR) accounted for 31.3% of sales in August.
The Outside Central Region (OCR) emerged as the best-performing segment, with 123 units sold, making up 59.1% of all transactions. Top sellers included Hillock Green, which sold 17 units at a median price of S$2,108 psf, and Lentoria, with 15 units sold at a median price of S$2,217 psf.
Meanwhile, in the Core Central Region (CCR), 20 units were sold, with key transactions occurring at One Bernam, 19 Nassim, and Watten House.
Executive Condo Market Holds Steady
In the executive condo (EC) segment, developers sold 36 units in August, a slight 2.7% decline compared to the 37 units sold in July. The 616-unit North Gaia in Yishun dominated the EC sales, accounting for 24 units sold at a median price of S$1,306 per sqft.
PropNex’s Wong noted that around 200 units of unsold EC inventory remain in the market. The tight supply is expected to benefit the upcoming EC launch, Novo Place in Plantation Close, Tengah, and Aurelle of Tampines, later this year.
Luxury Market Sees Bright Spots (August Home Sales Plunge)
While overall sales declined, the luxury segment of the market remained resilient. Seven non-landed homes priced above S$5 million were sold in August, compared to two such transactions in July. Notably, a 4,198 sqft four-bedroom unit at 32 Gilstead fetched S$14.71 million, or S$3,505 psf, marking the highest transacted price for a freehold condo in the first eight months of 2024.
Mohan Sandrasegeran, head of research and data analytics at SRI, pointed out that this sale during a traditionally slower period highlights the robustness of the luxury market. High-net-worth individuals, particularly Singapore Permanent Residents (PRs), continue to show strong interest in prime freehold properties.
In terms of buyer profiles, Singaporeans made up 88.5% of buyers in August, the third-highest proportion this year. Foreigners accounted for 2.4% of total buyers, while PRs made up 8.6% of purchases.
Anticipated Market Recovery (August Home Sales Plunge)
Looking ahead, industry experts predict a slight uptick in new home sales in September, buoyed by upcoming launches like the 158-unit 8 @ BT near Beauty World MRT by Bukit Sembawang, set to launch on Sept 21. Other anticipated projects include the 226-unit Meyer Blue, the 916-unit The Chuan Park at Lorong Chuan, and the 847-unit Emerald of Katong on Jalan Tembusu.
With these new launches, sales activity is expected to surge in the second half of 2024. Christine Sun, chief research and strategist at OrangeTee, believes that sales in 2H2024 may exceed the 1,889 units sold in 1H2024. The potential for Federal interest rate cuts may also boost buyer confidence and demand.
Overall, OrangeTee forecasts total new home sales for 2024 to range between 5,000 and 5,500 units, with prices growing by 0% to 2%. CBRE’s Song shares a similar outlook, predicting a full-year price growth of 3% to 4%. Despite challenges, the healthy public housing market is expected to support the OCR and RCR segments moving forward.
Read Also: Upcoming launches – Arina East Residences (Tanjong Rhu), Lentor Central Residences (Lentor), Harrison Food Factory (Freehold Industrial), Aurea Condo (Beach Road mixed development) and Nava Grove (Ulu Pandan).
