Singapore Private Home Sales Rebound Sharply in September, Fueled by Renewed Buyer Confidence

October 15, 2024

CONDOsingapore.com

Singapore’s private residential market staged a robust recovery in September 2024, with new home sales (excluding Executive Condominiums) surging 90% month-on-month to 401 units, according to Urban Redevelopment Authority (URA) data released Tuesday. The rebound follows a record-low August, historically muted due to the Hungry Ghost Festival, and marks an 84.8% year-on-year increase.

Market Drivers and Segment Breakdown

Post-Festival Momentum: Analysts attribute the uptick to revived buyer activity after August’s seasonal slowdown. “The end of the Hungry Ghost Period typically reignites market sentiment, prompting developers to launch new projects,” noted Mohan Sandrasegeran, Head of Research at Singapore Realtors Inc (SRI).

Including ECs: Total new home sales rose 75.3% to 433 units, though EC sales dipped slightly to 32 units amid dwindling supply, with only 171 unsold EC units remaining—a record low.

Launch Activity: Developers released 437 units in September, up 60.7% from August, signaling renewed confidence.

Top Performers and Buyer Preferences

The month’s standout project, 8@BT by Bukit Sembawang, sold 83 units at a median price of $S2,727 psf, driven by its efficient layouts and lack of balconies.“ Over 60% of the units were under S$2 million and that resonated with budget-conscious buyers,” highlighted Lee Sze Teck, Senior Director at Huttons Asia. Pinetree Hill followed with 72 units sold at S$2,501 psf.

Price Sensitivity: 64.4% of September’s buyers opted for homes under S$2.5 million, underscoring sustained demand for mid-range properties.

Regional Breakdown:

Outside Central Region (OCR): 165 units (41.1%).

Rest of Central Region (RCR): 221 units (55.1%).

Core Central Region (CCR): 15 units (3.7%).

Buyer Demographics and High-Value Transactions

Singaporeans dominated purchases at 90.3%, a trend expected to persist as more consider citizenship before buying. Notably, two units at 32 Gilstead fetched over S$14 million each, bought by permanent residents.

Mixed Forecasts for 2024

While agencies agree on gradual recovery, projections vary:

OrangeTee & Huttons: Forecast 5,000–5,500 annual sales, with prices rising up to 2%.

ERA: Predicts 5,500–6,500 units, citing boosted confidence from the Fed’s 50-basis-point rate cut.

Mogul.sg: Cautiously estimates 4,000–5,000 units, noting 2024’s first nine months saw the lowest sales since 1996 (3,077 units).

Outlook and Upcoming Launches

Analysts anticipate momentum from upcoming projects like Norwood Grand, Meyer Blue, and November’s Union Square Residences. However, Nicholas Mak of Mogul.sg warns of a December slowdown due to holidays, with recovery expected post-Lunar New Year 2025—provided developers avoid aggressive pricing.

“Showflats are bustling again, and buyer inquiries are rising,” said ERA CEO Marcus Chu, reflecting cautious optimism for the year’s final quarter.