Monthly Developer Sales December 2023

Based on the monthly developers’ sales data from the Urban Redevelopment Authority (URA), a mere 135 homes (excluding Executive Condominiums (ECs)) were sold by developers in December 2023, a month where there were no new launches.

The lower transaction volume was expected due to the holiday period, with many developers generally holding off new launches in the last month of the year.

For the whole of 2023 an estimated 6,452 primary sales were recorded, about 9.1% lower than the 7,099 developer sales in 2022. While December 2023 was a quiet month, Royal Hallmark in Haig Lane, the EC Parc Greenwich at Fernvale Lane, Pullman Residences in Dunearn Road, Piccadilly Grand in Northumberland Road and The M in Middle Road sold out their remaining few units before the end of the year.  

The Rest of Central Region (RCR) had the highest number of units launched at 4,268 and also the highest number of developer sales of 3,153 units in 2023, against the 2,688 units launched and 1,988 sales in the Outside Central Region (OCR).

In the Core Central Region (CCR), it is noteworthy to mention that even though only 726 units were launched in 2023, more than double the units launched (1,532 units) were sold during the year, notwithstanding the doubling of the Additional Buyer’s Stamp Duty rate for foreigners, showing that underlying domestic demand for prime properties continue to prevail in a period of uncertain economic conditions.

In 2024, some 20 new projects from awarded Government Land Sales (GLS) can possibly launch to bring about 10,000 new units to the market.

Experienced and savvy investors familiar with Singapore’s private residential scene, will remain nimble, on the lookout for residential opportunities in popular areas where new supply has been limited, creating bursts of buyer activity despite the prevailing cooling measures and elevated interest rates.

However, with growing expectations of interest rate cuts, some potential homebuyers might decide to wait until the cost of borrowing comes down before purchasing homes.

Demand for private housing is likely to be conservative in 2024 with new sales ranging between 7,000 and 9,000. There might be 15,000 to 18,000 private home sales overall for the whole year 2024 inclusive of the secondary market.

The completion of new supply in 2023 and 2024, would lead to softer private home price growth in 2024, in addition to the expected cuts in interest rates that will lead some homebuyers to adopt a watch-and-wait posture.

Nevertheless, prices in the new launch market will remain elevated due to committed land and construction costs.

This might result in two-tier pricing with the gap between the primary and secondary market widening. Overall, private home prices are projected to grow by a more moderate 3% to 5%, against the 6.7% (based on flash estimates) increase in 2023.