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Surge in July Sales
About Developer Sales Surge in July | July witnessed a dramatic rise in new private home sales, with 571 units sold, marking a 150% increase compared to the 228 units sold in June. This surge follows June’s near-record low, where only 228 units were sold, barely above May’s 223 units.
Monthly Sales Trends
According to Leonard Tay, head of research at Knight Frank Singapore, the monthly average for new private home sales this year stands at 357 units. In contrast, 2023 saw a monthly average of 556 units, 2022 had 616 units, and 2021 recorded a high of 1,114 units. Even during the 2020 pandemic recession, the monthly average was 861 units.
Artist’s Impression of Kassia
Year-to-Date Sales Performance (Developer Sales Surge in July)
From January to July 2024, a total of 2,460 new private homes have been sold, which is 48.7% lower than the 4,796 units sold in the same period in 2023. July’s sales offer a positive shift from the first half of 2024, which saw a record low of 1,889 units sold. The previous lowest half-year sales were in 1H2008 during the Global Financial Crisis, with 1,977 units sold.
Kassia and Sora: Key Drivers
Two major project launches in July significantly boosted sales. The 440-unit Sora at Yuan Ching Road in the Jurong Lake District was launched on July 6-7, followed by the 276-unit Kassia at Flora Drive in the Changi area on July 20-21.
Artist’s Impression of Sora
Kassia Tops July Sales (Developer Sales Surge in July)
Kassia, a freehold development, emerged as the top-seller with 154 units sold at a median price of S$2,049 psf. The project is approximately 55.8% sold to date, with 152 units priced at S$2 million or below. Lee Sze Teck, senior director of data analytics at Huttons Asia, noted that over 70% of Kassia’s 1-bedder and 1 + Study units have been sold, most for S$1 million or less.
Diminishing One-Bedder Units
Lee highlighted that the availability of 1-bedder units has decreased since the URA implemented a minimum dwelling size in 2018. Kassia is the last project in the Flora Drive – Flora Road enclave by the Tripartite Developers, a collaboration between Hong Leong, CDL and TID (a joint venture between Hong Leong Holdings as well as Mitsui Fudosan).
Sora’s Strong Performance (Developer Sales Surge in July)
Sora followed as the second best-seller in July, with 103 units sold at a median price of S$2,152 psf. About 23.4% of the development is sold to date. The 1 + Study and 2-bedder units were the most popular, with over 90% sold for S$2 million or below.
Impact on Nearby Developments
Developed by a consortium led by SingHaiyi, including KSH Holdings and Ho Lee Group, Sora’s location in the Jurong Lake District, with its 300m frontage of Jurong Lake Gardens, played a crucial role in its success. Mohan Sandrasegeran, head of research & data analytics at SRI, suggested that Sora’s momentum likely influenced the sale of 41 units at The Lakegarden Residences, with a median price of S$2,212 psf.
Regional Sales Breakdown (Developer Sales Surge in July)
The successful launches of Kassia and Sora, both located in suburban areas, led to a rise in sales within the Outside of Central Region (OCR) to 77.8% in July, up from 56.1% in June. Sales in the Rest of Central Region (RCR) accounted for 18.6% of the total, while the Core Central Region (CCR) made up only 3.7%.
High-End Sales
Midtown Modern achieved the highest transaction price in July, with a 1,808 sq ft 4-bedder unit sold for S$6.6 million (S$3,671 psf).
Artist’s Impression of Midtown Modern
Future Sales Projections (Developer Sales Surge in July)
With the onset of the Hungry Ghost Month (August 4 to September 2, 2024), traditionally considered an inauspicious time, Lee from Huttons Asia anticipates no new project launches. He estimates that new home sales could drop to between 150 and 250 units in August.
Upcoming Launches
In September, several new projects are expected to launch, including the 158-unit 8 @ BT along Bukit Timah Link by Bukit Sembawang Estates, the 226-unit Meyer Blue on Meyer Road by UOL Group and Singapore Land Group, and the 366-unit Union Square Residences along Havelock Road by CDL.
Market Outlook (Developer Sales Surge in July)
Marcus Chu, CEO of ERA Singapore, predicts a significant increase in new launches in 2H2024, with an estimated 2,512 units to be introduced in 3Q2024 and another 4,200 units in 4Q2024. This would exceed the 2,495 units launched in 1H2024. Despite this, new home sales are expected to close the year at around 5,500 units, with prices likely to rise by about 4%. Knight Frank’s Tay has adjusted his forecast for the year, now predicting between 4,000 to 6,000 units sold, down from his initial estimate of 7,000 to 9,000 units.
Read Also: More upcoming launches including Nava Grove (Pine Grove), Aurelle of Tampines (EC), The Chuan Park (District 20) and Lentor Central Residences (Lentor).
