SINGAPORE - Robust take-up at two suburban projects - the 605-unit Lentor Modern and the 158-unit Sky Eden@Bedok - drove up September’s new private home sales to the second highest monthly tally so far this year.
Developers sold a total of 987 units excluding executive condominiums (ECs), more than double the 438 units sold in August 2022, and up 18.3 per cent from a year ago, according to data released by the Urban Redevelopment Authority (URA) on Monday.
Citing pent-up demand from HDB upgraders and limited new suburban home supply, Ms Christine Sun, Orange Tee & Tie’s senior vice-president of research and analytics, noted that both projects sold well despite their median launch prices at above the $2,100 per square foot (psf) threshold, rising interest rates and economic uncertainty.
In September, the best-selling projects were Lentor Modern, Sky Eden@Bedok, Leedon Green, Pullman Residences Newton, Perfect Ten, Hyll on Holland and Riviere.
Lentor Modern moved 84.6 per cent or 512 units at a median price of $2,108 psf, while Sky Eden@Bedok sold 76.6 per cent or 121 units at a median price of $2,118 psf. Together, the two projects accounted for 84 per cent of all units launched in September.
Overall, in September, developers launched a total of 913 units, up 581 per cent from just 134 units launched the month before.
Including ECs, 992 units were sold in September with 913 units launched, compared with the 449 units sold in and 134 units launched in August.
The largest proportion of new private homes sold excluding ECs were in the $1.5 million to $2 million range, which accounted for 38.4 per cent of September’s sales. This was followed by the $1 million to $1.5 million bracket at 22.4 per cent and the $2 million to $2.5 million category at 21.6 per cent, CBRE said.
Nonetheless, the December 2021 cooling measures, rising interest rates and souring economic outlook have weighed on demand as well as developers’ confidence in launching new projects, Mr Ong Teck Hui, senior director of research and consultancy at JLL, said.
For the first nine months of 2022, 6,483 new private residential units were sold, a drop of 35.2 per cent from the 10,009 units sold in the year-ago period.
The number of private residential units launched from January to September 2022, plunged 51 per cent to 4,024.
Landbanking is expected to be more restrained, Mr Lam Chern Woon, head of research and consulting at Edmund Tie, said.
“Private residential price growth is projected to soften to 9 per cent for 2022, compared with 10.6 per cent last year,” he said.
Ms Tricia Song, CBRE’s head of research, South-east Asia, sees new home sales slowing significantly in the fourth quarter, even with two ECs - the 639-unit Copen Grand, the first EC in Tengah, and the 618-unit Tenet in Tampines - expected to launch in October and November respectively.
Home buyers and developers are likely to be sidelined by the December holiday lull, most major new launches already concluded, and the Sept 30 property curbs, she said.
Ms Sun, however, expects demand to be robust for the two new EC projects as these homes are “still more affordable” compared with the launch prices of some new suburban condos, and as EC supply remains tight.
Interest in Copen Grand appears strong based on the number of visitors to the show flat, Ms Wong Siew Ying, head of research and content, PropNex Realty, said. She cited its proximity to the Jurong Lake District and its location in Tengah estate.
She said EC buyers can opt for the deferred payment scheme and may be eligible for a CPF housing grant of up to $30,000. Those who are upgrading from HDB flats to a new EC also need not pay the additional buyer’s stamp duty upfront.
“We think these factors will increase the appeal of EC units among would-be buyers,” Ms Wong said.