_Monthly Developer Sales - October 2022
The private residential market has been characterised by headlining sales from major launches for several months now, and October was no different. Homebuyers are hungry for new product and in the month of October 2022, the only major launch was the Executive Condominium (EC) Copen Grand. This is the first project at the newly developing estate of Tengah and comprised the majority with 59.3% of all developer sales in October.
Therefore, a sales performance where 75% of units (480 out of 639 units) in Copen Grand were snapped up by buyers in the month of launch at a median price of S$1,345 psf in a non-mature locality, not only sets the bar for ECs in the area but also illustrates the appetite of homebuyers. This, in spite of the rising interest rates, widespread inflation and looming recessionary worries. There were also two other launches in October with not too much fanfare, comprising the landed Pollen Collection and a boutique project Enchante at Evelyn Road.
Excluding the EC sales from Copen Grand and North Gaia, there were only 312 developer sales in October representing a 68.4% decline from September 2022. In the Core Central Region (CCR), the sales at Perfect Ten (37 units sold), Pullman Residences Newton (13 units sold), and Hyll On Holland (12 units sold) showed the steady momentum of transactional activity of prime homes since borders reopened from April 2022 with median prices ranging from almost S$2,800 psf to more than S$3,000 psf. Once again in a month without many major new launches, the CCR has topped the other regions with 171 transactions, a repeat performance similar to the months of June (206 new sales) units or and August 2022 (221 new sales).
Centrally located projects in the Rest of Central Region (RCR) such as Riviere (16 units sold), One Pearl Bank (15 units sold) and The Landmark (12 units sold) also recorded double digit sales in what is generally considered a slower month, with median prices ranging from some S$2,350 psf to almost S$3,000 psf. Thus, in a month where there was no notable transaction activity (not including ECs) of pure private homes in the Outside Central Region (OCR), some of the premier offering in the CCR and RCR were being sold.
Overall, in October, there were just 102 units (no including ECs) launched as compared to the 913 units launched in September. Times are challenging for developers with rising construction costs and government measures, such as paying non-remissible Additional Buyer’s Stamp Duties (ABSD) as well as having to sell out within five years so as not to be liable for even more ABSD. As developers evaluate their risk in the days ahead, homebuyers concerned with rising interest rates that would crimp purchasing power will start to adopt a watch-and-wait approach even though the aspirational demand for new private homes among Singaporeans remains high.