August new private home sales drop 72% m-o-m to 394 units

at EdgeProp.sg.

Developers sold 394 new homes in August excluding Executive Condos (ECs), experiencing a 72.1% month-on-month (m-o-m) plunge in sales from the 20-month high of 1,412 units sold in July. Year-on-year (y-o-y) sales compared poorly to the 438 units sold in August 2022, with a 10% decline.

Wong Siew Ying, head of research and content at PropNex Realty, notes the hard-to-follow stellar sales in the month, attributing the decrease to the start of the Hungry Ghost month that generally sees a slowdown in market activity.

In August, four new projects were launched, featuring 78 units in the Core Central Region (CCR); 324 units in the Rest of Central Region (RCR); 306 units in the Outside Central Region (OCR) with The Lakegarden Residences and 105 units in the OCR with The Arden.

The Lakegarden Residences was the second best-performing project in August, moving 73 units at a median price of $2,101 psf.

The lacklustre sales can be largely attributed to the softer buyer sentiment felt throughout the market. Leonard Tay, head of research at Knight Frank Singapore, states that with the recent interest rate hikes and economic uncertainty, affordability has become an increasing concern for prospective buyers.

However, this did not stop Altura EC in Bukit Batok from being the best-performing project for August, with 225 out of its 360 units (63%) sold at a median price of $1,480 psf.

The OCR saw the highest total number of sales, with 192 units (49%), whereas the RCR saw 106 units (27%). CCR sales had a minor increase, with 96 units (9%) sold.

Tricia Song, CBRE head of research for Singapore and Southeast Asia, comments that the new launches failed to match July’s success, reporting take-up rates much lower than the 31% achieved at the highest sold Orchard Sophia with a median price of $2,808 psf.

At Zion Road Condo, a Great World City Condo, residents can enjoy tranquil city living. The property is nestled in a residential enclave and is close a selection of neighbourhood amenities, such as schools, supermarkets and dining options. Zion Road Condo is also strategically situated close to Orchard Road, providing easy access to various dining, shopping and entertainment facilities.

At the end of August, 5,189 new units had been sold this year, about 5.6% lower than the same period last year. CBRE estimates 17 projects totalling 6,773 units have been launched this year so far. Song believes the market’s pent-up demand has all but been absorbed, leaving investors with limited upside.

Huttons Asia senior director of data analytics, Lee Sze Teck, is of the view that despite the economic downturn, developer sales could hit between 7,000 to 8,000 units this year, which Knight Frank’s Tay believes is still achievable with up to 10 new launches planned from October 2023.

Sales this month are expected to remain muted due to the Hungry Ghost month, but is likely to pick up in October and November. Get the latest details on The LakeGarden Residences, Orchard Sophia, Tmw Maxwell, The Arden and Altura EC at EdgeProp.sg.