Large RCR project launches boost residential sales volume growth in Q2

The new residential sales volume increased 69.3% to 2,127 units.

A report showed that three large-sized project launches largely contributed to the growth of new residential sales volume in the second quarter (Q2) of 2023.

Savills’ latest report indicated that the sales volume rose significantly by 69.3% QoQ to 2,127 units due to the launches of The Continuum, The Reserve Residences, and Tembusu Grand in the Rest of Central Region (RCR). The new transactions in the region accounted for 74.0% island-wide in Q2 2023.

Next is the Core Central Region (CCR) and Outside Central Region (OCR), which comprised 20.9% and 5.1% of new sales in Q2, respectively. 

On a yearly basis, the new sales volume dropped by 11.3%. In terms of absolute transaction volume, the largest increase came from the RCR which saw the numbers grow from 257 units in Q1 2023 to 1,573 units in Q2 2023.

“The three project launches in RCR are part of the total new launch units which surged 80.9% QoQ to 2,374 units in Q2/2023. This was the first quarter with launches surpassing the 2,000-unit mark since Q4/2021 when 2,275 units were launched,” read the report.

Whilst the number of launches plunged 93.9% QoQ to a mere 40 units in the OCR, this was largely offset by the quarterly increase of 2.1% and 328.4% in launched units in the CCR and RCR, respectively.

Alan Cheong, Executive Director of Savills Research & Consultancy, said selling prices this year may increase more in the second half as prices for non-landed private residential properties (both new and resale) increased by just 2% in H1 2023 over Q4 2022.

“Much of that increase for the remainder of the year will have to come from the new sale market as developers have to pass through the higher land and construction costs. Therefore, we maintain our forecast for private residential property prices to rise 7% in 2023,” added Cheong.