Smaller projects cause 70% drop in Q2 condo launches

About 600-700 new units debuted, compared to 2,000 units launched a year earlier.

The number of private residential units launched in Q2 dropped 70% as a result of smaller project launches and more cautious buying sentiment.

In a report, Huttons Data Analytics estimates that there were 600-700 new private residential units launched between April to June 2024.

This would be about 50% lower than the 1,304 launched units in Q1 and is a 70% decline compared to the 2,374 units launched in Q2 2023.

Smaller project launches resulted not just in the lower number of new units, but also the lower sales: developers’ sales in Q2 were estimated at just 700 to 800 units. This is 65% lower compared to Q2 2023, and 35% lower than in Q1 of this year.

Overall, however, developers’ sales volume is on par with the number of launched units, reflecting the robust demand for new homes, according to Lee Sze Teck, senior director for data analytics at Huttons..

Prices stable; buyers cautious
Prices in the property market edged up just 1.1% in Q2, easing from the 1.4% in Q1, according to flash estimates from the Urban Redevelopment Authority (URA).

This is due to higher for longer interest rates, and cautious sentiments which capped price increases, Lee said, referring to the URA data.

Leonard Tay, head, research, at Knight Frank Singapore, noted that the prices for newly launched private homes will nevertheless remain elevated due to land costs that were committed 12 to 18 months ago, as well as prevailing high construction costs. 

Singaporean home buyers scouting out prospects in the prime areas have also become more selective in the search for an ideal home for themselves, Tay observed.

Hillhaven, The Botany bestsellers
Huttons named District 23, 26, and 15 as the top districts with the highest developers’ sales in Q2.

The Hillhaven, The Botany at the Dairy Farm, and The Myst were District 23’s best-selling projects for the period, with over 66% or 757 units sold in these three projects. In total 1,135 units were sold in District 23 for the period.

For District 26, Lentor Hills Residences, Hillock Green and Lentor Mansion were the top 3 best-selling projects within the Lentor precinct. Out of the 2,477 units in Lentor, more than 75% or 1,877 units have been sold in these three projects.

“The absence of a new launch for more than 10 years may have led to pent up demand and the creation of a private residential enclave in Lentor could have appealed to many buyers,” Lee noted.

In District 15, buyers flocked to the Grand Dunman, Tembusu Grand, and The Continuum.

“Some of the newly completed developments in District 15 had similar selling prices as the new projects, prompting some buyers to lock in units at these new projects,” Lee said.