Developers sales in February are still tepid. They’re down by nearly half because of the lack new condo launches

URA data also indicates that condos and private apartments were sold fairly evenly across the three markets segments last month. Each region sold 58 cars, which is 38.9%. Core Central Region sold 33 units in February, accounting for 22.1%. The median unit price across all three regional areas dropped in February.

Wong said that the CCR’s prime CCR saw a 3 per cent decline in median prices, mainly as a result of a low volume of sales and compared to the previous month. Prices in February fell by 1 and 0.5 percent in the OCR. Though sales have been relatively slow, analysts expect momentum to pick up with the launch a couple of major projects in March.

Included in this estate are the Lentoria and Lentor Mansion – both 533-unit buildings.

New private homes sales in Singapore continued their decline in February due to developers delaying launches during Chinese New Year (CNY).

Analysts suggest that in March, as the major launches take place, a truer reflection of consumer sentiment will emerge.

According to figures released by the Urban Redevelopment Authority on Friday (15th March), developers only sold 149 privately owned homes in the month of February. This represents a 47 per cent decrease from the 281 units that were moved in the previous month.

The number for February, excluding executive condominiums(ECs), is about a quarter of the 433 condos sold in the same month last year.

It’s also the lowest number of sales for February since 2008 when developers only sold 174 units. In February, 183 ECs (including ECs), were sold. In January, however, only 588 units were sold.

The fall is primarily attributed to the absence in major launches of non-landed developments. The developers launched only 45 units, almost a tenfold decrease from the 417 that were sold in the preceding month. A large number of buyers usually travel over the CNY period. This makes it an unsuitable time for a launch.

This is also quite different from other property booms that saw developers rush to launch their projects after CNY. Last month’s lack of new launches shows that developers have chosen to wait and see when the best time is to release their developments. The sales momentum has been tepid this year, as it was in previous years.

In 2023 new home sales reached a low 15 years ago of 6,421 unit, down 9,6 % from 2022 when they were 7,099 unit. This is due to repeated rounds cooling measures, an economic backdrop that has softened and increased interest rates. As a result, buyers now are more selective amid the myriad of launch options and buyer fatigue. They also have a greater resistance to expensive price points.

As there were no launches during February, the majority of sales came from previously launched projects. This includes the 512-unit Lumina Grand EC which was launched by Bukit Barok in early January. This development was the best selling project in Feburary, with 16 apartments sold at a S$1,497 median price per square foot (psf).

The Botany Dairy Farm (386 units) was the project that had the highest number of sales, 15 units. The median price per square foot for this project was S$2,018.

Locals bought 14 of the units and one was purchased by Singapore permanent residents.

Three new homes were bought by foreigners in February. This is the lowest amount of foreign homebuyers for a whole month since the Additional Purchaser’s Stamp Duties (ABSDs) were doubled.

These buyers see the value of their purchases, despite paying the heavy ABSD rate of 60%. Terra Hill unit of 3,035 square feet in RCR was sold at S$8.05m. ABSD of S$4m was required by the buyer.

Though sales have been relatively slow, analysts expect momentum to pick up with the launch a couple of major projects in March.

Included in this estate are the Lentoria and Lentor Mansion – both 533-unit buildings.

Lentoria is expected to support primary market sales by selling 50 units at its launch in March. Lentor Mansion – which is set to go on sale for bookings starting Mar 16 – has also attracted positive attention during its preview. We expect it to have a favorable response from customers.”

In comparison to February, which is a shorter month without any new product launches, March’s market performance may reflect a more accurate buyer sentiment.

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7,000 to 8, 000 new homes may be sold globally in 2024. While it is a significant improvement compared to the 6,421 unit sales of the previous years, the number is still far below the 5-year average of 9 288 units.

Near-term, macroeconomic conditions are likely to remain negative, with cooling measures and higher interest rates continuing to affect the residential market. However, sentiments could improve in 2024 H2 if interest rate levels ease and economic growth is restored.


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