The most recent figures published by the URA on July 15 show that property developers sold 228 new private residential residences (excluding executive condos) in June, a little 2.2% rise over May’s 223 units. This came to 752 units overall for Q2. Though there is a monthly increase, the sales, at 278 units sold in June last year, show an 18% decline. Under the current economic environment, purchasers are becoming more picky and budget-conscious, according to Lee Sze Teck, Senior Director of Data Analytics at Huttons Asia.
At 23 units sold at a median price of $2,119 per square foot (psf), the Lakegarden Residences ranked highest among projects sold in June. Head of Research and Data Analytics Mohan Sandgeran at SRI notes this increase in interest in response to the opening of the adjacent Sora project over the July 5–6 weekend. Originally introduced last August, the Lakegarden Residences sold 22 units from January to May. Marcus Chu, CEO of ERA Singapore, thinks that the possibility of a big Jurong Lake District (JLD) development by a group of big developers has raised buyer demand and trust in the area. Especially, 19 of the 23 units sold above 75 square metres, suggesting great demand from HDB upgraders looking for roomy residences.
Other noteworthy projects in June included Tembusu Grand with 20 units at $2,542 psf, The Botany at Dairy Farm, which sold 21 units at a median price of $1,979 psf, and Hillhaven, which moved 18 units at $2,124 psf.
With just 1, Rye sold, a 43.4% drop from 1H2023 and a 54.6% drop from 1H2022, the first half of 2024 has experienced the lowest half-year sales volume for new private residences since URA started tracking in 2000. Chief Researcher and Strategist Christine Sun of OrangeTee notes that this sales number is even less than during the Global Financial Crisis and Singapore’s COVID-19 lockdown. This decrease was caused in part by the low number of new units introduced: 1,938 in 1H2024. Reflecting continuing interest in high-end real estate within the Core Central Region (CCR), the luxury market saw notable sales in projects including Skywaters Residences, 32 Gilstead, and Watten House despite the slow performance.
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Looking ahead, Lee from Huttons expects a rise in sales numbers for July driven by significant project launches including Sora, Kassia, and The Green Collection. Selling 102 apartments during its July 5–6 launch, Sora, a 99-year leasehold property in the JLD, averaged $2,160 psf. Comprising 276-unit freehold, Kassia is scheduled to open on July 20. Additionally likely to draw much attention is the Green Collection, which consists of 20 strata-titled townhouses in Sentosa Cove.
In Q3 2024, projects scheduled include 8@BT, Emerald of Katong, Ariana East Residences, Meyer Blue, Union Square Residences, Norwood Grand, and The Chuan Park. Sales volume in the main market is likely to increase with around 17 new launch projects bringing about 8,400 units in the second half of the year. But the Hungry Ghost Festival’s (Aug 4 – Sept 2) strategy could cause developers to change their launch plans to steer clear of this usually unfavourable time.
Head of Research at Knight Frank Singapore Leonard Tay said more selective and measured purchasers will result from more new project possibilities. Sales volume will stay low, he projects, unless loan rates drop. Notwithstanding this, rising land prices and high building and development costs mean that private house prices are anticipated to rise by 3% to 5% this year. From the 7,000 to 9,000 units expected at the start of the year, Knight Frank projects that the new sale market will witness between 4,000 and 6,000 sales in 2024, a marked decline.