Muted Sales Amid No Major Launches
A total of 492 new sale units were launched in August 2023, compared to 134 units launched in August 2022. A total 394 new sale units (excluding Executive Condominiums (EC)) were sold in August.
Comparatively, the number of new sale units sold between January and August 2023 is only 5.8% lower than that of the same period in 2022 indicating resilient new sale demand. Well located projects continue to see demand from buyers looking for homes.
But notably, there are emerging signs of ‘buyers’ fatigue’ in the face of the higher number of project launches in recent months. The number of new sale units launched in the first eight months of 2023 has more than doubled (117.6%) compared to the same period last year.
Developers have collectively launched eight private new sale projects and one EC project between July and August 2023, totalling more than 3,000 units island wide. In addition to that, there will be some 13 projects set to launch by the end of 2023.
The top three bestselling projects in each market segment are Orchard Sophia (24 units sold) in the CCR, Grand Dunman (26 units sold) in the RCR and an EC, Altura (225 units sold) in the OCR.
EC Remains a Bright Spot
Altura, the only EC launch in 2023, sold more than 70% of its units at launch. The last EC launched in Bukit Batok was The Dew in 2001. The remaining unsold units will be open to second-timer applicants on 16 September.
Demand for EC remains resilient, translating to strong take up rate during launch weekends despite higher prices. Copen Grand and Tenet launched in 2022 are completely sold and there are no other EC launches expected for the rest of the year.
New Sale Transaction Volume In OCR Rose, Supported By Two Project Launches In August
Other than the EC, two of the four new sale project launches were in OCR. With that the proportion of new sale transactions in OCR rose to 48.7% in August.
Singaporean buyers still take up more than 80% of transactions, although the proportion of foreign buyers have increased by 4% in August 2023.
Luxury Property Market
There were 11 transactions for new homes priced S$5 million and above amid higher interest rates. On top of that, more foreign buyers who are further impacted by the higher ABSD rates imposed since April 2023, are also staying away from the luxury residential property segment for now.
Outlook
Strong Pipeline of Project Launches For The Rest Of 2023
Some 13 projects totaling around 3,650 units are expected across the island to launch from September 2023 till the end of the year, offering buyers more new choices. Major projects with more than 400 units that are set to launch include Marina View Residences (CCR), Hillock Green (OCR) and Sora (OCR).
