September 2023 Private Home Sales Dipped 44.9%

September 2023 Private Home Sales Dipped 44.9 Percent

September 2023 private home sales dipped 44.9% for the second consecutive month in the absence of big project launches, cautious market sentiment, and the seasonal lull during the Hungry Ghost Month.


Keys Points of September 2023 Private Home Sales

  • New private home sales (excluding executive condominiums) fell 44.9% to 217 units in September, down from 394 units in August. This is the lowest monthly sales figure in nine months since December 2022, when only 170 units were sold.
  • On a year-on-year basis, new private home sales contracted 78%.
  • The decline in sales is attributed to a lack of big project launches, cautious market sentiment amid high interest rates, the seasonal lull during the Hungry Ghost Month, and recent property cooling measures.
  • The number of units launched in September dived 88.5% to just 68 units, down from 590 units in August. It is also down 92.6%t from September 2022. This can be attributed to developers delaying launching new projects until after the Hungry Ghost Month.
  • Private home sales by district were almost evenly split, with 76 units (35%) sold in the prime district, followed by 71 units (32.7%) in the city fringes and 70 units (32.3%) in the suburbs.
  • The 76 units sold in the prime district represented the lowest monthly private home sales in over 2½ years which saw 58 units sold in February 2021.
  • Month-on-month, the number of private homes sold declined 20.8% for those in the prime district, 33% for the city fringes and 64% for the suburbs.
  • The smaller drop in private home sales in the prime district could be partly attributed to price discounts offered at some condominium projects and a slight increase in the proportion of units bought by foreigners.
  • The share of home sales to foreigners rose from 2.7% in August to 6.2% in September, the highest proportion since cooling measures were implemented in April. However, the increase is on the back of low sales volume in September which recorded just 13 transactions.
  • Including executive condominiums, September sales fell 48.4% to 335 units from 649 in August. Compared to a year ago, sales dropped 66.2% from 992 units.
  • Strong demand for executive condominiums (ECs) was witnessed from buyers as they turned more price-sensitive.
  • The only EC launched this year, Altura in Bukit Batok West Avenue 8, transacted another 100 units in September at a median price of $1,473 psf. This accounted for about 85% of the monthly EC sales and 88% of the project’s total number of units.


Outlook for Private Home Sales In Singapore

  • Property analysts forecast a total of 6,500 to 7,000 new private homes in 2023, below the 7,099 units in 2022.
  • Developers may choose to push back new launches till 2024 ahead of the year-end holiday, and when interest rates stabilise which will help to boost sentiment.
  • The demand for private homes and their prices may moderate over the next few months amid weaker demand from HDB upgraders due to the stabilisation of the public resale housing market.
  • The property market outlook in 2024 will largely be hinged on the pace of economic growth.


Upcoming New Property Launches

Meanwhile, below are some of the upcoming new property launches:

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Posted in Property News.

Hi, I'm Lance Kuan, an Associate Marketing Manager at Huttons Asia Pte Ltd, one of the largest property agencies in Singapore.

With almost 30 years of experience in banking, investment and market analysis, I now find immense pleasure in helping others in property investment and asset progression.

My blog - Sg Home Investment - offers essential property reviews, research and guides to help buyers make an informed investment decision. Please feel free to WhatsApp Me if you have any queries about the real estate market in Singapore.