New home sales continue to fluctuate on alternate months

Overview

New home sales volume has been fluctuating over the past seven months, with alternating monthly increases and decreases observed since October 2023. Specifically, sales volume surged in months when major projects were launched and dipped in the absence of such projects in the following month.

This trend persisted last month, with new home sales experiencing a dip after a surge in the preceding month. According to data from the Urban Redevelopment Authority (URA), new home sales (excluding executive condominiums or ECs) fell by 58.1 per cent to 301 units in April 2024 from 718 units in March 2024 due to a lack of major project launches.

On a year-on-year basis, last month’s new home sales decreased by 66.2 per cent from 890 units in April 2023. Including ECs, sales dipped by 57.7 per cent from 832 units in March 2024 to 352 units in April 2024.

The trends indicate that the launch of major projects has a significant impact on the volume of new home sales. Therefore, It is important that buyers not interpret the increase or decrease in volume as a reflection of market sentiment.

Best-selling projects

There were three new project launches in April – the 142-unit The Hill @ One North, the 59-unit The Hillshore and the 14-unit luxury development 32 Gilstead. Last month’s best-selling projects, including ECs, were The Botany at Dairy Farm, The Hill @ One North, North Gaia, Hillhaven, Lumina Grand, Pinetree Hill, Lentor Hills Residences, Lentor Mansion and Hillock Green.

By Market Segment

Last month’s transactions, excluding ECs, were mostly concentrated in the city fringe areas and the suburbs. 49.8 per cent or 150 units were in the Outside Central Region (OCR), while 39.5 per cent or 119 units were in the Rest of Central Region (RCR). The remaining 10.6 per cent, or 32 units, were in the Core Central Region (CCR). 

Luxury Market

At the upper end of the market, there was a jump in new non-landed homes that were sold for at least S$10 million last month. Five such transactions were inked, the highest monthly sales since ten units were sold in Oct 2021, according to URA Realis data.

A total of 12 new non-landed homes were sold for at least S$5 million, the highest transaction since November 2023 (60 units). The new luxury project, 32 Gilstead, accounted for four of the priciest transactions last month, with the highest price unit at S$14.5 million (S$3,455 psf) for 4,209 sqft third-floor freehold unit.

Outlook

The suburbs will likely maintain their strong presence in the new sales market. After the successful launch of Lentor Mansion, and supported by ongoing sales at Lentor Hills Residences and Hillock Green, more projects will be launched in the suburban areas. 

This includes one of the most highly anticipated projects, SORA, which is scheduled for release soon. SORA comprises 440 units and is situated on Yuan Ching Road in the Jurong Lake District. It is a rare development that offers both scenic greenery and picturesque lake views.

Two other upcoming projects to keep an eye on in the latter half of the year: The Chuan Park and Emerald of Katong. The Chuan Park is a development situated in Lorong Chuan, close to retail amenities and reputable educational institutions. On the other hand, Emerald of Katong is developed by the renowned Sim Lian Group and is conveniently located in the tranquil Tanjong Katong residential enclave. This project is just a 5-minute walk away from the upcoming Tanjong Katong MRT.