New private home sales fall in October as buyers wait for 'hot launches' in November
Two major projects, Hillock Green in Lentor and J’den in Jurong East, are expected to drive sales in November, say analysts.
Residential buildings are seen in this view of the Singapore skyline. (File photo: iStock)
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SINGAPORE: New private home sales in Singapore fell for the third straight month in October due to the absence of property launches.
Data released by the Urban Redevelopment Authority (URA) on Wednesday (Nov 15) showed that excluding executive condominiums (ECs), developers sold 203 units last month.
This is a 6.5 per cent fall from the 217 units moved in September and a 35.4 per cent drop when compared with October last year.
"Sales were subdued in October due to no major launches and buyers waiting for hot launches in November," said Huttons Asia senior director Lee Sze Teck, citing the highly anticipated launch of Hillock Green in Lentor and J’den in Jurong East.
Other analysts concurred and expect the two projects to drive sales in November.
Already J'Den - the first private residential project launch in Jurong East in a decade - sold 87.5 per cent of its 368 units on the first day of sales over the weekend, according to ERA Singapore's CEO Marcus Chu. The company is one of the joint marketing agents for the development.
Prices at J’den, situated on the site of the former JCube mall, start from S$2,100 (US$1,600) per square foot, according to developer CapitaLand. Huttons' Mr Lee said units were sold at an average price of S$2,451 psf on launch day.
Hillock Green, meanwhile, sold more than 130 units during its launch. OrangeTee & Tie deputy CEO Justin Quek described the development as "a good affordable option" for buyers who are keen to leverage its proximity to Lentor MRT station and the Lentor Modern mall.
"Watten House, the last CCR (Core Central Region) launch of 2023, is set to launch in November and is expected to draw interest from some genuine buyers looking for (their) own stay," added ERA Singapore's key executive officer Eugene Lim.
In timing the release of new launches, SRI's head of research and data analytics Mohan Sandrasegeran said developers likely opted for a strategic approach, "carefully spacing out their new project launches to maximise the impact and ensure optimal sales performance".
"This approach is driven by the need to prevent buyer fatigue, allowing potential buyers to have ample time to evaluate the available options and make informed decisions," he added.
OUTLOOK FOR THE REST OF THE YEAR
According to Mr Lee, November's sales figure could be in the range of 700 to 800 units, while December would be slower with fewer than 200 units.
Despite the traditional slowdown in December due to the holiday season, Mr Sandrasegeran said he expects the overall outlook for the following quarters to "remain optimistic", with more new launches continuing to drive the market's growth.
In view of J’den’s strong sales, OrangeTee & Tie's Mr Quek expects a sales figure of 6,600 to 7,100 new homes for the whole of this year, comparable to the 7,099 units sold in 2022.
