Huttons’ comments on September 2023 developer’s sales

Launches and Sales

It was another quiet month in September.

The absence of major launches took a toll on the sales volume. Developers sold an estimated 217 private residential units in September 2023, 44.9% and 78.0% lower month-on-month and year-on-year, respectively. This is the lowest monthly sales in 2023 and the lowest since Dec 2022 where only 170 units were sold.

The bright spot in September 2023 was the EC market. 118 EC units were estimated to be sold in September 2023. Demand for ECs have been very strong as price sensitive buyers look for the next best alternative to private homes. Furthermore, buyers of ECs are given upfront remission on ABSD.

Altura, the only EC project in 2023. It sold another 100 units after the first balloting, bringing overall sales close to 90%. Altura has seen very strong demand as there had not been an EC project in Bukit Batok in 22 years. North Gaia has also seen steady double-digit sales since April 2023.

Purchases by Foreigners

There is a slight pick up in purchases by foreigners in September 2023 to 13 from 10 in August 2023. Although foreigners remained confident in Singapore, the level of interest is unlikely to return to the pre-cooling measures level. Due to the low volume of transaction, the proportion of foreigners jumped to 5.9% in September 2023.

12 of the purchases by foreigners are in the CCR with the remaining in the RCR.

Top 10 Projects by Sales in Sep

Proportion of Purchase by Foreigners

Purchases by Market Segments and Price Range

Sales in the CCR made up 35.0% of total sales in September 2023, driven by Pullman Residences Newton, Midtown Modern, One Bernam, Klimt Cairnhill, Leedon Green and Orchard Sophia. However, the average monthly sales volume in the CCR since Jun 2023 was suppressed by almost 50% due to the cooling measures in April 2023.

The RCR accounted for 32.7% while the OCR made up 32.3%.

Almost 60% of the transactions in September 2023 are priced $2 to <$5 million due to more higher value properties sold in the CCR. The highest value transaction in September 2023 was the sale of a 2,164 sq ft unit at Dalvey Haus to a foreigner for $7 million.

Purchases by Residential Status and Price Range in Sep

Outlook

Huttons Data Analytics estimate developer sales to be between 5,200 and 5,500 units in the first nine months of 2023.

Hillock Green, J’den, Mattar Residences and Watten House are estimated to be launched for sale in 4Q 2023. Developer sales could end the year between 6,500 and 7,500 units. Prices of new homes are likely to increase up to 5% in 2023 on the back of higher inflation and resilient demand.

Upcoming launches in 4Q 2023