Sales volume picks up across the board on improved market sentiment

Overview

 Home buyers seem more optimistic after last month's interest rate cuts. There was a notable resurgence of buyers in the market, especially after the conclusion of the lunar ghost month.

Despite launching only one mid-sized project, the 158-unit 8@BT, September’s sales surged significantly on a month-on-month basis. There was also a widespread uptick in sales volume across various previously launched projects.

According to data from the Urban Redevelopment Authority (URA), new home sales, excluding executive condominiums (ECs), jumped by 90 per cent to 401 units in September 2024 from 211 units in August 2024. Including ECs, new home sales similarly increased by 75.3 per cent to 433 units in September from 247 units in August. Compared to September 2023, new home sales (excluding ECs) jumped by 84.8 per cent from 217 units.

New Launches

Last month’s demand for new homes primarily came from the new project launch, 8@BT, which garnered buying interest due to its proximity to several shopping malls like Beauty World Plaza and Bukit Timah Shopping Centre, and parks.

Previously launched projects saw an increase in sales, such as Pinetree Hill, which moved 72 units in September compared to 4 units in August; Hillhaven, which sold 46 units last month compared to 14 units in the preceding month. Other best-selling projects like Tembusu Grand, Hillock Green, Lentoria, The Myst, The Continuum, Sceneca Residence, Pollen Collection, etc, all reported higher sales in September compared to the preceding month. 

By Market Segment

Last month's sales, excluding ECs, were in the Rest of Central Region (RCR), accounting for 221 units or 55.1 per cent of the total transactions. This was followed by the Outside Central Region (OCR) at 165 units or 41.1 per cent, and the Core Central Region (CCR) at 15 units or 3.7 per cent.

Price Threshold

Most buyers' buying preference remained below S$2.5 million, with 64.4 per cent of total purchases (non-landed and landed excluding EC) falling in this price threshold in September, which was an increase from the 53.1 per cent recorded in August, according to URA Realis data. About a third, or 31.8 per cent, purchased homes for at least S$2.5 million but lower than S$ 4 million last month, down from 37.8 per cent in August.

Two new non-landed homes sold above S$10 million. Both units were 4,209 sqft freehold apartments at 32 Gilstead. One was transacted for S$14.6 million or $3,480 psf, while the other was sold at $14.4 million or $3,432 psf. Meanwhile, ten new non-landed homes were sold for at least S$5 million but less than S$10 million.

Buyers’ Profile

90.3 per cent of new non-landed and landed (exclude EC) home purchases were by Singaporeans last month, up from 88.5 per cent in August 2024, marking the highest proportion in six months. The proportion of purchases by permanent residents (PR) dropped slightly to 8.2 per cent last month. Similarly, the proportion of foreign buyers fell from 2.4 per cent to 1.5 per cent over the same period. 

Outlook

The anticipated decline in interest rates is expected to have a positive impact on the housing market. With home loans becoming more affordable, more buyers will enter the market, thus stimulating housing demand.