The launch of two new mass-market projects, Lentor Modern and Sky Eden @ Bedok, helped stimulate new private home sales in September, with sales volume surging to more than double that of August. Developers sold 987 new private homes (excluding Executive Condominiums, ECs),
a 125% increase from the 438 units transacted in August. This marks the highest monthly new private home sales since 1,355 units were sold in May 2022. Compared to September 2021, new private home sales in September 2022 saw a year-on-year increase of 18.3%.
Lentor Modern and Sky Eden @ Bedok collectively sold 633 new units, accounting for 64% of the monthly sales in September. These two projects boosted sales in the Outside Central Region (OCR) to 686 units, the highest monthly new private home sales for this sub-market in over a year, as a limited inventory of unsold units had dragged on transaction volumes for more than a year. Lentor Modern sold 512 units at a median price of S$2,108 per square foot (psf), while Sky Eden @ Bedok sold 121 units at a median price of S$2,118 psf, setting new benchmark prices for new launches in the OCR.
Due to the absence of new launches in September, new private home sales in the other two sub-markets declined. A total of 198 new private homes were transacted in the Core Central Region (CCR) in September, a 10.4% decrease from the 221 units sold last month. The most popular CCR projects this month were Leedon Green, which sold 31 units at a median price of S$2,876 psf, followed by Pullman Residences Newton with 27 units sold at a median price of S$3,039 psf, and Perfect Ten with 23 units sold at a median price of S$2,946 psf.
Meanwhile, developers sold 103 new units in the Rest of Central Region (RCR), down 19% from the 127 units in August. The sales volume for September 2022 is the lowest monthly record for the RCR since 77 units were sold in April 2020. The best-selling RCR project in September was Riviere, where buyers purchased 18 units at a median price of S$2,974 psf, followed by One Pearl Bank with 12 units sold at S$2,689 psf, and Meyer Mansion, which sold 10 units at a median price of S$2,657 psf.
Developers launched 913 new units (excluding ECs) in September, a significant increase from the 134 units launched last month. In the first nine months of 2022, a total of 4,024 new units (excluding ECs) were launched for sale, a decrease of 51% compared to the same period last year.
With a significant injection of new mass-market homes in September, the OCR sub-market accounted for over two-thirds of this month’s new private home sales. According to URA REALIS caveat data, local buyers accounted for 92% of new OCR private home sales in September, while foreigners and Singapore Permanent Residents accounted for 1.5% and 6.4% of new OCR sales respectively (see Chart 1). From August to September, the proportion of Singaporean buyers in other market segments also saw a slight recovery, rising to 75.5% in the CCR and 76.5% in the RCR. Overall, Singapore citizens accounted for about 87% of total new private home sales in September, up from 75.5% in August.
The median unit price for new private homes in the OCR rose by about 11% month-on-month to S$2,108 psf in September, mainly due to the strong sales of new projects launched in September at higher benchmark prices (see Table 1). Meanwhile, median transacted prices in the CCR and RCR climbed at a steady pace of 2.2% and 4.1% to S$2,873 psf and S$2,530 psf, respectively. Due to higher construction costs and relatively fixed land prices, developers are expected to maintain their current pricing strategies, with launch prices for new projects likely to remain firm for the rest of the year. Additionally, the limited number of unsold units will support prices.
The average price gap between new private home sales in the CCR and OCR narrowed from 55% in August to 38% in September (see Chart 2). This narrowing of the price gap was expected, as new OCR projects (Sky Eden @ Bedok and Lentor Modern) set new benchmark prices at launch, with average unit prices breaking the S$2,100 psf mark.
Singapore Market Outlook
Given the limited number of private condominium launches, Leo Kwek, a senior local real estate agent at AnjiaSG, expects new private home sales (excluding ECs) to return to lower levels in October after the spike in September, while activity in the EC market is set to pick up. Based on the foot traffic at the showflat, the upcoming Copen Grand EC has generated strong interest from homebuyers. Potential buyers are likely attracted to its location near the Jurong Lake District and within the upcoming Tengah new town, known for its green and smart technologies. Furthermore, EC buyers can opt for the deferred payment scheme and may be eligible for a CPF Housing Grant of up to S$30,000. Those upgrading from HDB flats to a new EC are also not required to pay the Additional Buyer’s Stamp Duty (ABSD) upfront. Leo believes that these factors will enhance the appeal of EC units to potential buyers.
In the first nine months of 2022, over 6,480 new private homes (excluding ECs) were sold, a decrease of about 35% from the same period in 2021. Leo projects that the total new private home sales for the full year of 2022 could be between 8,000 and 8,500 units, significantly lower than the more than 13,000 units sold in 2021.
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