_Monthly Developer Sales - November 2022
There were just three launches of smallish projects, Hill House, Kovan Jewel and Sophia Regency, for a total of 144 newly launched units. However, these did not generate much take-up from buyers as only 16 units were sold from these projects. As such, there were only 259 sales (excluding Executive Condominiums (ECs)) by developers in the month of November, some 17.3% less than October which was already a slow month. In the eleven months of 2022 thus far, November chalked up the lowest monthly sales volume for the year, as the Core Central Region (CCR) was the most active with 148 sales, in comparison to the 73 sales in Rest of Central Region (RCR) and 38 sales in the Outside Central Region (OCR).
Without the launch of a substantially sized project, homebuyers appear to have turned their attention towards travel and holidays in November. And with interest rates on a high and the economy slowing, there is no present compelling incentive for homebuyers to be active. This was unlike a year ago in November 2021, when 1,547 developer sales were recorded. Back then, the larger number of new residential units launched that included Canninghill Piers (696 units) in the RCR and The Commodore (219 units) in the OCR wowed homebuyers. Favourable economic factors such as the low interest rates then, as well as the growing promise that the worst of the pandemic was behind Singapore boosted the confidence of both the developers and buyers a year ago.
The EC, Copen Grand, in Tengah recorded the highest number of sales with 176 units changing hands as the project sold out in November, showing that there is demand for suburban housing. However, a lack of new launches in the Outside Central Region (OCR) muted sales. With no new significant launches for two months now in October and November, and none expected in December, the year 2022 is expected to end on a quiet note. Nonetheless, as each month passes without a sizable substantial new project that can capture the imagination of the homebuying public, pent-up demand builds. There is every chance that in the early months of 2023, a new launch would be able to bring buying activity back into the new home market, so long as the current pall of economic pessimism is not further exacerbated by more troubling news.
Year 2022 is now likely to end on a whimper in Q4 2022. With an estimated primary sales volume of just under 7,000 new units sold during the year from January to November, the total for 2022 is expected to be about 7,500 new home transactions as Singapore residents spend time on their holidays in December. This is slightly under Knight Frank’s earlier projection of 8,000 to 9,000 units.