ASEAN HEADLINE-HOUSING | New private home sales inch up in June as suburban properties draw buyers

SINGAPORE – Developers’ sales crept up slightly in June, led by greater demand for homes in the suburbs, despite the lack of new project launches.

Developers sold 228 new units in June, up 2.2 per cent from the 223 units moved in May, according to data from the Urban Redevelopment Authority (URA) released on July 15. The figures exclude executive condominiums (ECs).

On a year-on-year basis, new private home sales were down 18 per cent from 278 units in June 2023.

Mr Mohan Sandrasegeran, head of research and data analytics at property agency Singapore Realtors, said the lion’s share of new private home transactions in June, or 57.9 per cent, was recorded in the suburbs.

Homes in the city fringes accounted for 31.1 per cent of sales, while the remaining 11 per cent were in the prime district.

In the suburbs, The Lakegarden Residences, a 306-unit condo in the Jurong Lake District, moved 23 units at a median price of $2,119 per sq ft (psf), making it the top performer in June.

“New developments launched near each other can potentially create a spillover effect, driving interest and sales for all involved projects,” said Mr Sandrasegeran.

For instance, he said the buzz surrounding the July launch of Sora – a 440-unit project in the Jurong Lake District – could have led to a sense of urgency among buyers, spurring sales at The Lakegarden Residences in June.

Meanwhile, 50 new EC units were sold in June, up 25 per cent from the 40 units in May.

Ms Christine Sun, chief researcher and strategist at property firm OrangeTee Group, said new home sales in the first half of 2024 hit a record low with an estimated 1,916 units sold, excluding ECs.

Transaction volume was 43.4 per cent lower than the 3,383 units sold in the first half of 2023, and 54.6 per cent lower than the 4,222 units sold in the same period in 2022.

“Sales hit a record low mainly because the number of units launched was also at a new low,” Ms Sun said, noting that an estimated 1,938 units were rolled out in the first half of 2024, the lowest since the first half of 2004 when 2,080 units were launched.

Knight Frank research head Leonard Tay said sales volume is likely to remain subdued until interest rates come down.

“Prominent new launches that can spur market activity have also been lacking, against a backdrop of home buyers who are reticent to commit to any purchase,” he added.

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Ms Wong Siew Ying, head of research and content at real estate firm PropNex, said she expects new private home sales to rebound in July with the launch of Sora, and the upcoming launch of freehold development Kassia in Flora Drive on July 20.

Sora sold 102 – or 23.2 per cent – of its 440 units at an average price of $2,160 psf during its launch weekend on July 6 and 7.

“Thereafter, new home sales are likely to be soft in August with the Hungry Ghost month kicking in – a period which tends to see slower property transactions, and developers refraining from launching new projects,” Ms Wong added.