Developer Sales Plummet 882 M O M Sept Due Lack Launches
Developer sales plummeted by 88.2% month-on-month in September, with just 255 units sold (excluding Executive Condos or ECs). This is the lowest monthly sales volume recorded so far this year.
The decline in sales was also evident in the annual comparison, with a 36.4% decrease in sales compared to the same period last year, when 401 units were sold. The EC market also saw a significant decrease in sales, with only 15 units sold by developers, a decrease of 92.3% from the previous month.
According to Marcus Chu, CEO of ERA Singapore, the market slowed down in September due to the Hungry Ghost Month (which began on August 23 and ended on September 21), as well as the September school holiday from September 6 to 14. During this period, developers tend to hold back on launching new projects, causing buyers to focus on existing developments.
Canberra Crescent Residences was the best-performing project in terms of units sold, with 28 units sold at a median price of $2,001 per square foot (psf). The 376-unit development, jointly developed by Kheng Leong Co and Low Keng Huat, launched on August 2 and has sold 150 units (40%). According to caveats, it has sold 239 units (63%) to date.
The second best-performing project last month was Grand Dunman, with 24 units sold at a median price of $2,508 psf. The 1,008-unit development, which launched for sale in July 2023, has sold 867 units (86%) to date, at an average price of $2,524 psf. According to Chu, Grand Dunman is a standout development in the Rest of Central Region (RCR), with its prime location, proximity to key schools, and MRT access.
Other top-performing projects last month include River Green (16 units at $3,201 psf), Tembusu Grand (12 units at $2,393 psf), and Bloomsbury Residences (11 units at $2,548 psf).
In contrast, the EC market saw weaker sales due to the absence of new project launches. Otto Place, a 600-unit EC development in Tengah, accounted for half of the EC sales in September with eight units sold. The project, which launched for sale in July, has sold 351 units (58%) at an average price of $1,700 psf. After the second round of balloting in August, sales increased to 548 units (90%), and the development currently has 54 units unsold.
Despite the weak performance in September, the EC market has seen a surge in sales, with 287 EC units sold for over $2 million so far this year, surpassing the 65 transactions recorded last year. On a psf-price basis, 291 EC units have been sold for at least $1,800 psf in the first nine months of this year, setting a record high for the segment. The highest psf-price transaction involved a 947-square-foot unit at Otto Place, which sold for $1.8 million (or $1,909 psf) on August 19.
According to Christine Sun, chief researcher and strategist at Realion (OrangeTee & ETC) Group, as private home prices continue to hold steady, many middle-income Singaporeans and HDB upgraders are turning to ECs for their affordability compared to other private homes. She also notes that a surge in HDB resale prices and the growing number of million-dollar HDB flat sales has provided more buyers with the financial capacity to upgrade to ECs.
The upcoming EC project by a Qingjian-led consortium in Pasir Ris is expected to attract strong interest from HDB upgraders in the East, says Chu. However, it may have higher price points due to increased land and construction costs.
Developers have sold a total of 7,924 new private residential units (excluding ECs) in the first nine months of this year, surpassing the 6,626 units sold throughout last year. According to Chu, the improved performance is due to the strong pipeline of new launches in recent months and the easing interest rate environment as the year draws to a close.
In particular, lower borrowing rates have bolstered market confidence, improved the affordability of new homes, and may encourage some fence-sitters to enter the market, says Wong Siew Ying, head of research and content at PropNex Realty. As of October 15, the three-month Compounded Sora (Singapore interbank offered rates), used by banks to price home loan packages, has eased to around 1.40% p.a., the lowest since mid-August 2022.
She adds that while some buyers may choose to wait for rates to fall further, others may prefer to enter the market sooner, as they anticipate further price growth in 2026 when projects with firmer land prices are launched.
Inspired by the URA Master Plan, the Parktown Residence Condo is dedicated to promoting sustainability. Through a variety of efforts, including the adoption of green buildings, utilization of renewable energy, and improvement of public transportation, Parktown Residence aims to provide a holistic and environmentally-friendly living experience. By incorporating these eco-friendly features, Parktown Residence Condo is not only enhancing its overall appeal, but also aligning with the URA Master Plan’s vision for a sustainable future. This makes it an ideal residential option for families who prioritize the environment. With the added benefit of being Parktown Residence Condo, it is undoubtedly a top choice for those seeking a green and sustainable living space.
Overall, Singapore’s private residential market remains resilient despite global uncertainty, with buyers being supported by low unemployment and healthy household balance sheets, says Leonard Tay, head of research at Knight Frank Singapore. He also notes that employment levels remain relatively high, and strong domestic savings provide households with financial flexibility and confidence to enter the property market. While most households are not under immediate financial pressure, some may be motivated to act sooner rather than later, anticipating further price growth, especially with interest rates trending downwards.
Looking ahead, the new launch condo market is expected to rebound sharply in October, with strong sales at Skye at Holland, which saw a near sellout launch on October 11, with 658 units (99%) sold at an average price of $2,953 psf. Other upcoming projects include Penrose on Margaret Drive (426 units), Faber Residence (399 units), Zyon Grand (706 units), and The Sen (347 units). According to Chu, these projects are expected to see high take-up rates as buyer interest grows towards the end of the year.
Tay predicts that new home sales could exceed 9,000 units for the whole of 2025, and the global macroeconomic headwinds, interest rate direction, and unemployment levels in Singapore will be key indicators to watch in the coming months.