New private home sales slump on lack of fresh major condo launches, rising mortgage rates
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The private resale market also recorded sales dropping 28.4 per cent in October from the previous month.
ST PHOTO: KEVIN LIM
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SINGAPORE – New private home sales slumped in October on the dearth of new major condo launches following the Sept 30 cooling measures,
The private resale market also moderated, with sales dropping 28.4 per cent in October from the previous month, property company JLL noted.
But the executive condominium market was a silver lining, with Copen Grand selling 78 per cent, or 498 units, of its 639 flats at a median price of $1,345 per square foot (psf) following its October launch.
Still, that was not enough to offset the downswing in overall sales.
Excluding exec condos, October’s new home sales fell 68.4 per cent to 312 units from 987 a month ago
This is on the back of the number of new private home units (excluding exec condos) launched plunging more than 88 per cent to just 102 in October from 913 a month earlier, according to data released by the Urban Redevelopment Authority (URA) on Tuesday.
Only two small projects were launched in October: the 25-unit Enchante in Evelyn Road, and 22 units of 132-unit Pollen Collection in Nim Road. Each sold only two units.
CBRE head of research for South-east Asia Tricia Song attributed the “severe drop in volumes to cautious sentiment in the face of fixed-rate home loans rising above 4 per cent, as well as rising macroeconomic headwinds”.
Ms Wong Siew Ying, head of research and content at PropNex Realty, said that the new cooling measures and low unsold inventory “delivered a one-two punch”.
“As with previous rounds of cooling measures, we witnessed a fall in sales in the following month, as buyers likely deferred their property purchase, preferring to monitor the measures’ impact and waiting for the dust to settle,” she said.
In addition, the balance unsold new stock likely comprises larger units with a higher price quantum.
“This could encourage some buyers to switch to the resale market or wait for new launches that will offer a fresh selection of new two- and three-bedroom units,” Ms Wong added.
JLL Singapore senior director of research and consultancy Ong Teck Hui expects new private home price growth to slow in the fourth quarter, partly due to the upcoming December holidays.
“The URA overall price index has risen 8.2 per cent in the first three quarters of this year. With rising interest rates and the cooling measures continuing to bite, and an expected economic slowdown in 2023, private home price increases next year are likely to be significantly moderated compared with 2022,” he added.
The prime district led the bulk of new home sales in October as the reopening of Singapore’s borders continued to support foreign buying.
These buyers are likely less affected by the tighter financing climate, said Mr Lam Chern Woon, head of research and consulting at Edmund Tie.
The prime district accounted for 55 per cent of total overall sales, or 171 units.
Top sellers included Perfect Ten in Bukit Timah, which shifted 37 units at a median price of $2,955 psf; Pullman Residences Newton, which sold 13 units at a median price of $3,039 psf; and Hyll on Holland, which transacted 12 units at a median price of $2,794 psf, PropNex said.
Developers sold 81 new units in the city fringe, a 21 per cent drop from 103 units in the previous month.
Riviere in Jiak Kim Street was the most popular city fringe project in October, transacting 16 units at a median price of $2,949 psf; it is followed by One Pearl Bank, which sold 15 units at a median price of $2,497 psf.
New home sales in the suburbs plunged about 91 per cent to just 60 units in October, coming off a high base in September, when the launch of Lentor Modern had boosted sales, Ms Wong said.
