May 2024 Developer Sales Report: New Home Sales Sales Fell Further Amid Fewer Launches

Following April’s 57.7% month-on-month (m-o-m) fall in new sale numbers, May 2024 saw a further decline of 25.9% m-o-m to 261 units (including Executive Condominiums (ECs). This is on the back of the launches of smaller developments such as Skywaters Residences (198 units) and two boutique projects – Straits at Joo Chiat (16 units) and Jansen House (20 units).

A total of 248 new private homes were launched in May, compared to 278 units in April. This marked a 10.8% m-o-m decrease. Correspondingly, a total of 221 new homes, excluding ECs, were sold, registering a 26.6% m-o-m decrease.

EC sales momentum slowed in May 2024, with 40 units sold. With no new EC launches since January 2024, buyers are snapping up the remaining units of current EC stock. North Gaia (19 units) and Lumina Grand (20 units) accounted for 97.5% of EC units sold, with the other sold unit from Provence Residence.

EC stock fell to only 299 new EC units remaining across the five projects – North Gaia, Altura, Lumina Grand, Parc Greenwich and Tenet. Demand for ECs is likely to stay subdued until the current stock of limited options is fully sold, given the limited selection. The next ECs will likely only be launched in early-2025. as the Plantation Close and Tampines Street 62 (Parcel B) sites were awarded in September and October 2023 respectively.

Best Performing New Launches

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

Source: URA as of 18 June 2024, ERA Research and Market Intelligence, ERApro

Excluding ECs, all five top performing developments were found in District 23 (Bukit Batok, Bukit Panjang) or District 26 (Mandai, Upper Thomson) of the Outside Central Region (OCR).

Lentor Hill Residences was the best-selling project in April, with 25 units sold at a median price of $2,164 psf. The development has now sold 88.1% of its 598 units. Following Lentor Mansion’s launch in March at benchmark prices in the Lentor Hills Estate, there was an uplift in prices for the surrounding developments that were launched previously. The median price psf for Lentor Hills Residences’ increased from $2,114 psf in March to $2,164 psf in May 2024. Similarly, Hillock Green also moved another 21 units at a median price of $2,128 psf, increasing from $2,109 psf in March.

Homes in District 23 ($2,047 psf) and 26 ($2,176 psf) presented value buys for new home buyers as their median prices are below the island-wide median of $2,206 psf (excluding ECs) in May 2024.

ECs continue to provide a strong value proposition for buyers due to the subsidies provided. However, with no new EC launches till early-2025, buyers will continue to take up existing units in the market, seen from the moving of 39 units from Lumina Grand and Altura.

Buyer Profile

Singaporeans made up the majority of new non-landed home buyers (82.5%) in May 2024, marginally lower than the 82.3% in April. Foreign buyers accounted for another six transactions (2.7%).

May 2024 also marks one year since the doubling of Additional Buyer Stamp Duty rate for non-permanent resident (PR) foreign buyers to 60%. Between June 2023 and May 2024, foreign buyers only accounted for an average of 3.1% of total new sale buyers each month. This is significantly lower than the previous 12-month period, where foreign buyers accounted for an average of 11.2% of new sale transactions each month.

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

Source: URA as of 18 June 2024, ERA Research and Market Intelligence

New Home Sales Momentum to Remain Slow with No New Launches Slated for June

June 2024 will likely continue to see subdued sales as there are no expected launches. Moreover, the school holiday period seasonally sees more subdued sales as more people travel out of the country

New home buying activities could only start picking up in 2H 2024. Kassia (280 units) and Sora (440 units), two small-to-mid sized developments in Changi and Jurong Lake will be open for booking in July 2024. Moreover, highly-anticipated large projects such as The Chuan Park and Emerald of Katong slated for launch in 3Q 2024 are expected to capture the interest of home buyers and boost new home sales.

For now, buyers are cautious and remain sensitive to overall price quantum especially since interest rates are likely to stay elevated for longer. The initial forecast of rate cuts may be delayed further into 2024, given the persistent high inflation rate in the US. However, we could see the return of buyer interest once the rate cuts are implemented in the later part of the year.

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