Condo launches drive rebound in private new home sales rebound

Private new home sales surged 

Singapore private new home sales more than tripled to 784 units in November from 203 units in October following strong take-up during the three projects launched that month, property analysts said. 

Citing compiled data from the Urban Redevelopment Authority on Friday, OrangeTee & Tie said last month’s rebound, which snapped the declining sales in the three months prior, was buoyed by pent-up demand for major project launches. Year on year, developers’ sales were up 202%. 

The bulk of sales were from the projects launched that month, led by the 368-unit J’den in Jurong East which saw 89% of its units snapped up in November. This is followed by the 132 units or a 28% take-up in 474-unit Hillock Green at Lentor Central, and the 109 homes sold in Watten House in District 11 which represented 61% of its 180 units that month.

For the eleven months of the year, new home sales totalled 6,319 units with about 100 to 150 units expected to change hands in December, according to Huttons Asia senior director for data analytics Lee Sze Teck. He expects full-year sales to range from 6,400 to 6,500 this year.

“The strong performance and price points achieved in the recent three launches may potentially see price growth exceed 1% in 4Q 2023 [and] grow more than 5% [for the whole year],” Lee said. “This will give developers confidence to launch projects in 2024."

Knight Frank, meanwhile, expects the private residential market to remain attractive among home buyers, especially in areas where supply of new homes is relatively low.

“Experienced and savvy investors familiar with Singapore’s private residential scene, will remain nimble, on the lookout for residential opportunities in popular areas where new supply has been limited, creating bursts of buyer activity despite the prevailing cooling measures and elevated interest rates,” said Leonard Tay, research head at the property firm.