Huttons’ comments on August 2023 developer’s sales
After a blistering month of July where sales were more than 1,000 units, the new homes market was muted in August.
Developers sold 394 private residential units in August on the back of 4 project launches – Orchard Sophia, The Arden, The Lakegarden Residences and TMW Maxwell. This is 72.1% and 10.0% lower month-on-month and year-on-year, respectively.
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The lunar seventh month which starts on 16 August played a role in the quieter market in August. Based on caveats, developers sold an estimated 283 private residential units from 1 to 15 August. Sales fell to 112 private residential units in the period 16 to 31 August. Some buyers may have pushed back their buying decision till the lunar seventh month is over. Sentiments have turned cautious, leading to slower sales activities in August.
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At the same time, project launches only took place in 1H of August with no launches in 2H of August. This led to 590 private residential units launched in August, 72.6% lower than July 2023 but 340.3% higher than a year ago. There was no launch during the lunar seventh month in 2022 which spanned almost the entire month of August.
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The first and only EC launch in 2023, Altura did very well, selling 225 out of 360 units. There had not been an EC in Bukit Batok for 22 years and many buyers were looking forward to it. Buyers appreciate the quality finishes and facilities in Altura which are comparable to private residential homes but at a more affordable price.
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Purchases by Foreigners
There were 12 purchases of residential properties by foreigners in August 2023. Half of the purchases were in the CCR with the other half in the RCR and OCR.
Proportion of Purchase by Foreigners
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Purchases by Market Segments and Price Range
Sales were spread out across the three market segments. The CCR made up 24.4%, the RCR 26.9% and the OCR 48.7% in August.
With a larger proportion of sales in the CCR, the proportion of sales $2 million and above increased to 47.6%. However, there were no sales of residential properties worth $10 million and above. Some buyers may have adjusted their budget because of the higher ABSD.
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Purchases by Residential Status and Price Range in Aug
Outlook
Huttons Data Analytics estimates developer sales of more than 5,200 private residential units in the first eight months of 2023. With up to 10 new launches in the pipeline from October 2023, developer sales could end the year between 7,000 and 8,000 private residential units, still higher than 2022’s 7,099 private residential units despite the economic uncertainties.
Prices of new homes are likely to trend higher in 2023 on the back of imported inflation and high interest rates.
Upcoming launches in Oct/Nov 2023
