New private home sales slide to 8-year low on lack of new launches, year-end lull
New private home sales in Singapore slumped for a second straight month to an eight-year low due to a dearth of major project launches amid the year-end slowdown and a dwindling stock of unsold units.
Excluding executive condominiums (ECs), November’s new home sales fell 17 per cent to 259 units from 313 in the previous month - the lowest number 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, with many coming from already launched projects, according to data released by the Urban Redevelopment Authority (URA) on Thursday. The number sank from 1,283 units launched in November 2021.
Three small boutique projects – Hill House, Sophia Regency, 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 square foot (psf) ,while the 34-unit Kovan Jewel moved four units at a median price of $2,120 psf.
Another factor behind 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 there was no major suburban condominium project 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 noted.
This trend could reverse after Chinese New Year when more suburban condo projects are launched in the first quarter of 2023, he added.
In particular, Sceneca Residence, a 268-unit residential project near Tanah Merah MRT; Lentor Hills Residences, The Botany@Dairy Farm, and The Arden could benefit from pent-up demand, analysts said.
Meanwhile, the sales momentum in the EC market should continue in the next two months, with Copen Grand now fully sold and Tenet EC in Tampines having sold 72 per cent of its 618 units over the launch weekend on Dec 3.
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.”
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