July 2024 Developer Sale Report: Kassia Leads New Home Sales with Attractive FH Pricing

Sales of new homes picked up steam in July 2024, more than doubling month-on-month (m-o-m) from June’s 228 units to 571 units (excluding Executive Condominiums).

Another 37 units of Executive Condominium were sold in the same month.

The upswing in sales numbers comes on the back of two top performing new launches that made their debut in July, namely Kassia (276 units) and SORA (440 units).

With Kassia and SORA selling 154 and 103 units respectively, these top performers collectively made up 45% of July 2024’s new home sales, further shoring up the Outside Central Region’s (OCR) dominance in the residential primary market.

Although July’s performance for new home sales is the strongest by far since April 2024, it still marks a substantial drop year-on-year compared to the 1,412 units sold in July 2023.  This July saw fewer project launches compared to last year, which featured larger developments like Grand Dunman (1,008 units), Lentor Hills Residences (598 units), Pinetree Hill (520 units), and The Myst (408 units).

Separately, July also marks the first time in 2024 that new home transactions of $1M and below were recorded. A majority of the one-bedroom units from Kassia fell within this price range, making it an attractive entry price for investors looking for a freehold unit.

Best Performing New Launches

Table 1: Top five performing new launch projects (excluding EC) 

Source: URA as of 15 Aug 2024, ERA Research and Market Intelligence

Kassia clinched the top spot in July’s new home sales, moving 154 of its 276 units (56% sold) at a median price of $2,049 per square foot. This strong performance cements Kassia’s position as the second best-selling launch of 2024. Kassia’s solid performance is built on the backbone of its freehold status, as well as a competitive price point.

The next top performer, SORA (440 units) saw 101 units transacted at a median price of $2,152 psf. Notably, the bulk of units moved during SORA’s weekend comprised of one-bedders with a study, which had starting prices of $996,000 – as well as two-bedders, priced upwards from $1.3M. SORA’s debut has also given the area a fresh injection of smaller new private homes, specifically 1- and 2-bedders, which have mostly sold out at neighbouring The LakeGarden Residences.

With 41 units moved at a median price of $2,212 psf, The LakeGarden Residences ranks third among July’s best-selling projects. This is a continuation of the project’s strong showing in June, having placed first with 23 units sold at $2,119 psf during an otherwise tepid month. With the launch of Sora, The LakeGarden Residences moved another 25 of the 3-bedroom and larger units as some buyers who were waiting to compare the prices and layouts between the projects, have finally committed to a purchase.

Executive Condominiums

In the EC segment, sales of new homes remained stable for July, clocking in at 37 units sold.

Among existing EC projects that saw new sales activity, the top performers were North Gaia and Lumina Grand. A total of 26 units of North Gaia were transacted at a median price of $1,319 psf, and another 11 units were moved for a median price of $1,492 psf at Lumina Grand.

Though presently subdued, the EC market is poised for an injection of fresh stock with the anticipated launch of Novo Place (508 units), jointly developed by Hoi Hup Realty and Sunway Developments, in 4Q 2024.

Buyer Profile

New home demand from foreign buyers dipped even further in July as 2023’s cooling measures continue to take their toll on sales numbers. The number of Singapore PR buyers (69 units) more than doubled m-o-m and is the highest seen last November.

Based on data from URA Realis, foreign buyers lodged only six caveats in July, a further decline from the 11 registered the previous month. Among these, one was for a property priced between $1M and $1.5M, four were for properties priced between $2M and $2.5M, and one was for a property priced between $3.5M and $4M.

Chart 1: Buyer profile for all new non-landed homes excluding ECs 

Source: URA, ERA Research and Market Intelligence

Luxury Properties (Non-landed Homes $5 mil and above)

A total of two luxury homes, priced at $5M and above, were transacted in July 2024. Both deals were from Midtown Modern.

Chart 2: Buyer profile for homes transacted at $5mil and more

Source: URA, ERA Research and Market Intelligence

What can we expect in 2H 2024?

Despite July’s performance giving 2H 2024 a strong kick-off, the market for new homes is expected to remain tepid in August in view of the Hungry Ghost Festival (4 August to 2 September). Typically, this period is characterised by a slower market with fewer launches.

Highly anticipated launches projected to launch such as Meyer Blue (226 units), Emerald of Katong (846 units), and The Chuan Park (916 units) could drive new home sales later in 2H 2024. Collectively, the new launches scheduled for 3Q 2024 will introduce an estimated total of 2,512 units. Alongside a further 4,200 units scheduled for 4Q 2024, this should significantly surpass the 2,495 units launched in 1H 2024.

Despite probable rate cuts in Sept, we do not anticipate a swift market rebound. While Singapore’s economy is expected to stay resilient, downside risks remain. Therefore, we expect homebuyers to remain cautiously optimistic under today’s climate.

In view of these factors, ERA forecasts that 5,500 to 6,500 new private homes will be sold by end-2024. We also expect new home price growth to reach between 4% to 6% y-o-y by the end of 2024, given the prevailing cautious economic mood.

Disclaimer

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