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Latest Property Real Estate News - Published on 15/12/2022
15 December 2022, Singapore – New private home sales remained tepid in November as a lack of major project launches and tight unsold inventory in the primary market weighed on sales volume. Developers sold 259 new units (excluding Executive Condos) in November, representing a 17% decline from the previous month and a fall of 83% from November 2021.
Three smaller projects – Hill House, Sophia Regency, and Kovan Jewel – were put on the market in November. The 72-unit Hill House sold 12 units at a median price of $3,028 psf while 34-unit Kovan Jewel shifted 4 units at a median price of $2,120 psf.
By sub-markets, new home sales volumes fell across the board from October to November. The Core Central Region (CCR) led monthly sales, selling 148 units which accounted for about 57% of the monthly sales. The top-selling CCR projects during the month included Leedon Green which transacted 16 units at a median price of $2,851 psf, One Holland Village Residences which sold 15 units at a median price of $2,886 psf, and Perfect Ten which shifted 14 units at a median price of $3,154 psf.
Meanwhile, developers sold 73 new units in the Rest of Central Region (RCR) in November – down by nearly 10% from 81 units transacted in the previous month. Riviere is the most popular RCR project in November, selling 19 units at a median price of $3,024 psf. It is followed by The Landmark which sold 13 units at a median price of $2,459 psf. Riviere, which is expected to obtain its temporary occupation permit (TOP) in Q1 2023 has been steadily moving units over the past months; the 455-unit project is 87% sold as of November.
Developers’ sales were particularly sluggish in the Outside Central Region (OCR) as the lack of sizable launches and depleted unsold stock meant fewer options for home buyers. In November, 38 new units were transacted in the OCR – down by 37% from October. Lentor Modern was the best-performing OCR project in November, selling 9 units at a median price of $2,218 psf.
Meanwhile, EC sales came in at 186 units in November, following the strong sales of 498 units in the previous month. The EC sales volume was driven by Copen Grand, which sold 176 units at a median price of $1,323 psf in November. Copen Grand in the up-and-coming Tengah new town is now fully sold just after a month from its launch on 22 October 2022.
In November, developers placed 319 new units (ex. ECs) for sale– up from 102 units that was put on the market in the previous month. No new ECs were launched during the month.
Ms Wong Siew Ying, Head of Research & Content, PropNex Realty:
“Developers’ sales in November were subdued amid the lack of new project launches and the thinning unsold stock of new homes on the market, especially in the OCR. Based on the URA data, most of the existing OCR launches are 80% to 100% sold, leaving buyers with limited options. Similarly, unsold stock in the RCR has also pared down following the steady sales at city fringe projects. We expect this imbalance in supply and demand to persist in December.
In view of low unsold stock, we anticipate that upcoming OCR launches in Q1 2023, such as Sceneca Residence, Lentor Hills Residences, The Botany@Dairy Farm, and The Arden should garner healthy interest due to pent-up demand.
In the first 11 months of 2022, developers have sold about 6,980 new private homes (ex. ECs). Given the dearth of new launches, tight unsold supply and year-end seasonal lull, we expect new home sales to hover around 7,300 units for full year 2022, normalising from the 13,027 units sold last year. We believe the decline in sales is largely due to the pullback in launches this year – developers launched just over 4,400 new private homes (ex. ECs) for sale in 11M 2022, sharply lower than over 10,000 units in the corresponding period in 2021.
Meanwhile, the EC market continued to be lively in November, dominated mainly by Copen Grand, which is now fully-sold. The EC sales momentum will keep up in December 2022 and January 2023, with Tenet EC in Tampines selling 72% of its 618 units over the launch weekend on 3 December. We expect Tenet to similarly sell out a month from its launch, when the sales quota for second-timer buyers is lifted. Amid high private home prices and rising interest rates, well-located ECs will remain a firm favourite among Singapore households because of their strong value proposition – on average, the price gap between new ECs and OCR launches is at more than $700 psf this year.
We expect the private new home sales market to finish the year on a relatively quieter note, but 2023 should bring more choices to would-be buyers as more new launches come on. In addition, there is also a possibility of slowing interest rate hikes in 2023, which could give homebuyers more confidence to enter the market.”