August 2024 Developer Sales Report: New Home Sales Spooked by the Hungry Ghost Festival

  • By Egan Mah Jixiang
  • 3 mins read
  • Private Residential (Non-Landed)
  • 17 Sep 2024
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August saw 208 new private homes sold, including seven landed units from the Pollen Collection. This figure represents a 63.6% month-on-month (m-o-m) decline, marking the lowest number of new private home sales since February 2024, when 149 units were sold. The steep decline can be attributed to the absence of new project launches during the Hungry Ghost Month, as well as the high sales base in July 2024. Year-on-year (y-o-y), sales of new private homes were down by 43.6%.

Also, due to tight supply of new Executive Condominiums (EC), only 36 units were moved in the month.

The Hungry Ghost festival has historically led to dampened developer activity as well. Consequently, only 272 units were launched across five existing projects this August.

Best Performing New Launches

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

Name

Market segment

Total units

Number of units sold

Median price ($psf)

TEMBUSU GRAND

RCR

638

30

$2,455

HILLOCK GREEN

OCR

474

17

$2,108

LENTORIA

OCR

267

15

$2,217

HILLHAVEN

OCR

341

14

$2,153

LENTOR HILLS RESIDENCES

OCR

598

13

$2,148

Source: URA as of 17 Sep 2024, ERA Research and Market Intelligence, ERApro

The top five best-selling projects in August are all within a 10-minute walk from an MRT station, reflecting buyers’ preferences of living near MRT stations for easy accessibility.

Tembusu Grand was the best-selling project for August, moving another 30 units at a median price of $2,455 psf. We observed a resurgence of buyer interest in the area, following the opening of the Thomson-East Coast Line (TEL), as well as upcoming launches such as Meyer Blue and Emerald of Katong. The opening of the TEL line could have also boosted interest among potential buyers concerned about the area’s connectivity.

Three of the top five best performing developments were located in the Lentor Hills Estate, demonstrating its popularity among new homebuyers. Hillock Green (17 units), Lentoria (15 units) and Lentor Hills Residences (13 units) sold below the islandwide median new sale price of $2,238psf in August.

Looking ahead, we anticipate buyers gravitating towards homes located in new residential precincts, which like Lentor Hills estate, are within walking distance to neighbourhood amenities and an MRT station.

Additionally, these interested buyers may prefer to purchase now rather than waiting and risking being priced out of the market when the supply of new private homes in Lentor Hills dries up.

With a median price psf of just $2,148, Hillhaven also proved to be a value buy for homebuyers looking for a unit in the West. The development’s unit mix caters to most families’ needs, and it is within walking distance of Hillview MRT and Rail Mall. The combination of these elements presents a strong value proposition to buyers.

Executive Condominium

In the EC segment, sales of new homes remained stable for August at 36 units, clocking in the same number sold in July. North Gaia was the best-performing project, with 24 units moved at a median price of $1,306 psf.

Though the EC market is poised for an injection of fresh stock with the anticipated launch of Novo Place (508 units) in 4Q 2024, sales are likely to remain tepid until then.

In the meantime, EC buyers have the option to choose from available units across North Gaia (62 units), Altura (19 units) and Lumina Grand (101 units).

Buyer Profile

New private home demand from foreign buyers continued to remain low in August, with just five transactions made. On the other hand, the number of new private homes bought by Singapore Permanent Residents (SPRs) fell to 18 units in August, down from last month’s 64 units.

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

Source: URA as of 12 Sep 2024, ERA Research and Market Intelligence

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

A total of six luxury homes, priced at $5M and above, were transacted in August 2024. The highest-priced transaction was a 4,198 sqft unit at 32 Gilstead, which was purchased for $14.7 million ($3,505 psf) by a Singapore Permanent Resident (SPR).

Chart 2: Buyer profile for all new non-landed homes excluding ECs transacted at $5mil and more

Source: URA as of 12 Sep 2024, ERA Research and Market Intelligence

What can we expect in the last four months of 2024?

While August’s performance was underwhelming compared to July’s strong showing, we should see an increase in new sale transactions in September.

The launch of 8@BT, a 158-unit development near Beauty World MRT Station alongside impending interest rate cuts could spark homebuying activities towards the end of the year.

The coming months will also see the launch of more new projects. There are 13 new private developments in the pipeline, potentially yielding a total of 6,204 units. This includes several mega-developments in popular heartland areas such as Parktown Residence (1,195 units) in Tampines, The Chuan Park (916 units) in Serangoon, Emerald of Katong (846 units) in the East Coast area.

Even with the improved economic growth sentiment, the projected rate cuts and a lower inflation forecast, buyers could remain cautiously optimistic. Current cooling measures are still in effect and are likely to put a dent in the pace of recovery.

While the first eight months of 2024 saw just 2,628 new units moved, compared to 5,333 in the same period in 2023, we may still see a rebound in new sale transactions by the end of the year, provided they are launched at the right time and with competitive pricing.

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.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

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