About Record Low in 1st half 2024: Developers Sell 228 New Private Homes in June. In June, developers have sold 228 new condo units. This figure excludes executive condominiums. This is a 2.2 % increase from May’s 223 units, according to URA‘s latest data released on 15th July 2024. The second quarter saw 752 brand new private condominium units transacted. However, this is 18 % lower than the 278 condo units sold in June 2023. “Buyers are cautious due to the economic situation,” says Lee Sze Teck, of Huttons Asia.
The Lakegarden Residences, the best-seller in the year of June 2024, with 23 condo units sold at a price of S$2119psf. Mohan Sandrasegeran, of SRI, says that the nearby launch of Sora in early July 2024, sparked interest in The Lakegarden Residences. The Lakegarden Residences has transacted 22 condo units from January to May in 2024. Many buyers waited until after Sora’s preview, says Marcus Chu, of ERA Singapore. “The planned major development in the Jurong Lake District boosted buyer confidence,” says Chu. Most units transacted at Lakegarden Residences were larger, indicating demand from HDB upgraders.
Other top sellers in June included The Botany at Dairy Farm, with 21 units sold at a price of S$1979psf. Tembusu Grand condo sold 20 units at a price of S$2542psf. And Hillhaven sold 18 units at a price of S$2124psf.
More on Record Low in 1st half 2024
The 1st half of 2024 saw the lowest sales in the half year sales volume for new condominium units since 2000. According to OrangeTee. Only 1916 new condo units were sold in 1st half of 2024. A 43.4 % drop from 3383 units in 1st half of 2023, and a 54.6 % drop from 4222 units in 1st half of 2022. Christine Sun, of OrangeTee, notes that 1st half of 2024 sales are lower than during the Global Economic Crisis as well as the Covid 19 lock-down. “Sales had hit a record low due to fewer units launched,” says Sun.
Despite slow primary market sales, the luxury segment saw notable transactions from projects like the Skywaters Residences, 32 Gilstead condo, and the Watten House. “Luxury real estate still attracts strong interest,” says Sandrasegeran.
July 2024 sales are expected to rise with major project launches such as Sora condo, Kassia condo, as well as The Green Collection, says Lee of Huttons. Sora, on Yuan Ching Road, sold 102 units in its 5th to 6th July launch at an average price of S$2160 psf. Kassia condo with 276 units, is a freehold project. It will be launched on 20th July. The Green Collection will feature 20 townhouses overlooking the Golf Course at Sentosa Cove.
Upcoming Launches
Upcoming 3rd quarter of 2024 launches include 8 @ BT, Arina East Residences, Emerald of Katong, Meyer Blue, Union Square Residences, Norwood Grand, and The Chuan Park. “With more launches in the 3rd quarter of 2024, sales volume should increase,” says Lee. ERA data suggests the second half of the year could see 17 new projects, adding 8400 new units. However, the Hungry-Ghost Chinese 7th month Festival from 4th Aug till 2nd of September may delay some launches, says Sun.
Leonard Tay, of Knight Frank Singapore, expects buyers to stay selective. Sales volumes will remain low until interest rates drop. Despite this, new private home prices could rise 3 % to 5 % this year due to high land and construction costs. Knight Frank predicts 4000 to 6000 units will be sold in 2024, lower than the initial 7000 to 9000 unit forecast.
