New home sales dipped last month due to a lack of sizable project launches. Only 31 private homes were launched in June. 

According to data from the Urban Redevelopment Authority (URA), new home sales, excluding executive condominiums (ECs), dipped by 73.2 per cent from 1,039 units in May to 278 units in June this year. Including ECs, sales decreased by 71.9 per cent from 1,056 units to 297 units over the same period. 

On a year-on-year basis, sales excluding EC fell by 43 per cent from 488 units in June 2022. 

Based on the final sales figures released by URA for Q1 2023, 1,256 new private homes excluding EC were sold in the first quarter of this year. Therefore, an estimated 3,463 new homes were sold in the first half of this year, which is 18 per cent less than the 4,222 units sold in 1H 2022 and 46.4 per cent less than the 6,459 units sold in 1H 2021.

Demand for new private homes shrank as there was only one small project launched last month, the 17-unit Lavender Residence, which sold 8 units. 

Previously launched projects continued to sell units. For instance, The Reserve Residences moved another 79 units in the previous month. The other best-selling projects, including ECs, were Leedon Green, North Gaia, Van Holland, The Atelier, Pullman Residences Newton, Grange 1866, Piccadilly Grand, and One Pearl Bank. 

 The bulk of last month’s transactions, excluding ECs were in the Rest of Central Region (RCR) at 52.9 per cent or 147 units. This was followed by the Core Central Region (CCR) at 40.3 per cent (112 units) and the Outside of Central Region (OCR) at 6.8 per cent (19 units). 

At the upper end of the market, only 6 new non-landed homes were sold for at least S$5 million last month. According to URA Realis data, the priciest transaction was a 6,179 sqft freehold condominium at Les Maisons Nassim sold for S$32.7 million or S$5,300 psf. This was followed by another unit at the same project transacted for S$30.8 million or S$5,050 psf. The other 4 nonlanded homes were at projects like Klimt Cairnhill, Dalvey Haus, and Cairnhill 16. 

The number of non-landed new homes (excluding EC) bought by foreigners (non-permanent residents) fell further to 13 units in June, from 30 units in May and 67 units in April, according to URA Realis data. In terms of proportion, the number of transactions by foreigners rose slightly to 4.8 per cent last month from 3 per cent in May 2023. 

Singaporean purchases dipped from 86.4 per cent or 857 units in May to 84.1 per cent or 228 units in June this year. Conversely, Singapore PR purchases rose from 10.6 per cent (105 units) to 11.1 per cent (30 units) over the same period. 

Barring a global economic downturn or unforeseen circumstances, we will continue to see marketing activities in the second half of this year as more projects are slated for launch. Developers are riding on the positive buying momentum as new home demand from first-time buyers remains robust. Others are launching their projects ahead of the lunar seventh month. 

New home sales will rebound in July as there are a few big project launches, including Lentor Hills Residences, The Myst, Pinetree Hill, and Grand Dunman. We estimate that between 7,000 and 8,000 new homes could be sold in 2023. Overall prices for new homes may rise at a slower pace by 3 to 5 per cent this year, down from 12.5 per cent in 2022 and 13.3 per cent in 2021.