S’pore new private home sales slide to 8-year low in November on lack of new launches, year-end lull
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Sceneca Residence in Tanah Merah is among projects that could benefit from pent-up demand in 2023, say analysts.
PHOTO: LIANHE ZAOBAO
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SINGAPORE – New private home sales slid to an eight-year low in November on dwindling unsold stock and as developers held back on major new launches amid the seasonal year-end slowdown and the latest round of cooling measures.
Excluding executive condominiums (ECs), November’s new home sales fell 17 per cent to 259 units from 313 in the previous month – the lowest sales since December 2014, when 230 units were taken up.
The drop was even starker compared with a year ago – an 83 per cent plunge from 1,547 units sold in November 2021.
The number of new private homes (excluding ECs) released for sale rose to 319 in November from 102 in October
Three small boutique projects – Hill House in River Valley, Sophia Regency near Orchard Road and Kovan Jewel – were put on the market in November. The 72-unit Hill House sold 12 units at a median price of $3,028 per sq ft (psf), while the 34-unit Kovan Jewel moved four units at a median price of $2,120 psf.
Another factor behind the subdued November sales is low unsold stock, especially in the suburbs.
“Most of the existing suburban launches are 80 per cent to 100 per cent sold. Similarly, unsold stock in the city fringe has also pared down. We expect this imbalance in supply and demand to persist in December,” PropNex Realty head of research and content Wong Siew Ying said.
As no major suburban condominium project was launched in October and November, the share of prime district sales against overall total sales jumped to 57.1 per cent last month, from 20.1 per cent in September, ERA Realty head of research Nicholas Mak said.
Five of the 10 top condo sellers in November were in the prime district, with demand for homes in this segment growing as the gap narrowed between prices of homes in the prime district and those in the suburbs and city fringe, CBRE South-east Asia head of research Tricia Song noted.
But Mr Mak said this trend could reverse after Chinese New Year when more suburban condo projects are launched in the first quarter of 2023.
In particular, Sceneca Residence, a 268-unit residential project in Tanah Merah, Lentor Hills Residences, The Botany At Dairy Farm and The Arden in Bukit Panjang could benefit from pent-up demand, analysts said.
November’s top-selling projects in the prime district included Leedon Green, which transacted 16 units at a median price of $2,851 psf and One Holland Village Residences, which sold 15 units at a median price of $2,886 psf.
Riviere in Jiak Kim Street was the most popular city-fringe project in November, selling 19 units at a median price of $3,024 psf. Expected to get its temporary occupation permit in the first quarter of 2023, the 455-unit project is 87 per cent sold as at November, PropNex said.
Riviere in Jiak Kim Street was the most popular city-fringe project in November, selling 19 units at a median price of $3,024 psf.
PHOTO: FRASERS PROPERTY
Developers’ sales were sluggish in the suburbs as the lack of sizeable launches and depleted unsold stock meant fewer options for home buyers. In November, 38 new units in this submarket were transacted, down 37 per cent from the previous month.
Meanwhile, the sales momentum in the EC market should continue in the next two months, with Copen Grand in Tengah now fully sold and Tenet EC in Tampines having sold 72 per cent of its 618 units over the launch weekend on Dec 3. Copen Grand sold its remaining 176 units in November at a median price of $1,323 psf.
Reasons cited include the attractive location of both EC projects, and the widening price gap between ECs and new private home launches, Ms Song said. “The property curbs also do not affect EC buyers significantly as they are typically first-time buyers and upgraders,” she added.
Ms Wong said: “We expect Tenet to similarly sell out a month from its launch. Amid high private home prices and rising interest rates, well-located ECs will remain a firm favourite because of their strong value proposition.
“On average, the price gap between new ECs and suburban launches is at more than $700 psf this year.”
But that was not enough to mitigate the drop in overall sales. Including ECs, sales fell 45.1 per cent to 445 units in November from 811 units in the previous month, and down 72 per cent from a year ago.
