August new private home sales drop 72% m-o-m to 394 units

September 15, 2023

According to data released by URA on Sept 15, developers sold 394 new homes excluding executive condos (ECs) in August – a 72.1% m-o-m plunge from the 1,412 units sold in July that marked a 20-month high. On a y-o-y basis, sales were down 10% compared to 438 new homes sold in August 2022.

The m-o-m drop in sales follows fewer new launches. “The stellar sales in July was always going to be a tough act to follow in August, which coincided with the start of the Hungry Ghost month – a period where market activity tends to slow due to fewer launches,” remarks Wong Siew Ying, head of research and content at PropNex Realty.

Excluding ECs, four new projects were launched in August, comprising the 78-unit Orchard Sophia in the Core Central Region (CCR); the 324-unit TMW Maxwell in the Rest of Central Region (RCR); and the 306-unit The Lakegarden Residences and the 105-unit The Arden in the Outside Central Region (OCR).

The new projects were all launched in the first half of August, prior to the start of the lunar seventh month on Aug 16. A total of 590 new homes were launched, about 73% lower than the 2,156 units launched the month before.

The performance of the new private launches was softer compared to July, with no project achieving a take-up higher than the 31% sold at Orchard Sophia with a median price of $2,808 psf, notes Tricia Song, CBRE head of research for Singapore and Southeast Asia. In comparison, new launches in July achieved take-up rates between 29% to 56%.

Leonard Tay, head of research at Knight Frank Singapore, attributes the lower sales to softened buyer sentiment. “Homebuyers have become increasingly reticent, taking the time to evaluate the selection of projects that have been launched in the past few months, as well as upcoming launches,” he says.

Tay adds that with the escalation of interest rates in the last year and economic uncertainty, affordability has become an increasing concern among homebuyers. This, in turn, has continued to underpin strong demand for EC projects. The 360-unit Altura EC in Bukit Batok, which launched in August, was the best-performing project for the month with 225 units (63%) sold at a median price of $1,480 psf.

More at: