SRI - Singapore Realtors Inc.

17 May 2024

Monthly Developer Sales Insights - Feb 2024

Property Insight

The Monthly Developer Sales report offers insights into the performance of the property market in the month of February, particularly focusing on new home sales and the impact of seasonal variations like the Chinese New Year.

Key Highlights and Developments:

In February 2024, developers sold 149 units (excluding Executive Condominiums, ECs), representing a 47.0% month-on-month decrease from the 281 units sold in January 2024. This decline is attributed to the Chinese New Year festivities, which typically slow down property sales due to fewer major new launches.

Sales Volume:

Only 45 units were launched in February, compared to 417 in January, marking an 89.2% reduction. The limited launches included The Myst (20 Units), 19 Nassim (15 Units), and Watten House (10 Units).

Top Performers:

Lumina Grand was the top-selling development for the second consecutive month, with 16 units sold at a median price of $1,497 per square foot (psf). It also set a new record price for an EC at $1,590 psf.

The Botany at Dairy Farm emerged as the top-selling non-landed development, with 15 units sold at a median price of $2,018 psf.

Terra Hill recorded the highest transaction of the month, selling a 5-bedroom unit for $8.05 million ($2,652 psf), the second-highest price for a new launch freehold condominium in the Queenstown area.

Market Trends:

Historical data suggests a pattern where sales dip during the Chinese New Year period but recover shortly thereafter. For instance, after a sales increase in February 2023 post-January festivities, and a similar uptick in March 2022 following the February celebrations.

Outlook:

An increase in new home sales is anticipated in March, driven by the launch of new developments like Lentoria and Lentor Mansion. The planned staggered TOP dates for projects in the Lentor area aim to gradually increase population density, ensuring infrastructure and community amenities develop in sync with residential growth.

Click here for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

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8@BT Dominates New Home Sales as Market Surges in September 2024

Developers sold 401 units (excluding ECs) in September, a strong rebound from the 211 units in August, reflecting a significant 90.0% month-on-month increase. This surge signals renewed market activity and growing buyer confidence. The strong performance can largely be attributed to the end of the Hungry Ghost Festival. The post-festival period often sees a revival in sentiment, allowing developers to capitalize on renewed interest. Strategic project launches, such as 8@BT, further benefited from this revival, tapping into pent-up demand.

On a year-on-year basis, new home sales saw an 84.8% rise, with 217 units sold in September 2023. This growth reflects a broader positive trend, with developers launching new projects to meet the resurgent demand from buyers confident in long-term real estate investments.

Best-Selling Projects in September

The project 8@BT led the list with 83 units sold at a median price of $2,727 psf, thriving in September’s sales. Pinetree Hill followed with 72 units sold at $2,501 psf. Other notable projects included Hillhaven, Tembusu Grand, and Hillock Green, indicating a strong preference for the Rest of Central Region (RCR) and Outside Central Region (OCR).

Local Buyers Lead at 8@BT

The transaction data for 8@BT reveals a strong preference among local buyers. Out of the 83 units sold, 76 units were bought by Singaporean buyers, representing 91.6% of total sales. Singapore Permanent Residents (PRs) accounted for 6 units, making up 7.2%, while foreigners represented only 1.2%.

Rest of Central Region Tops Sales in September

The Rest of Central Region (RCR) led with 55.1% of total units sold, reflecting strong buyer interest in areas balancing centrality and affordability. Best-selling projects like 8@BT and Pinetree Hill, both located in the RCR, performed well. The Outside Central Region (OCR) followed with 41.1%, driven by suburban projects like Hillhaven and Hillock Green, which offered affordability and liveability. The Core Central Region (CCR) accounted for only 3.7% of sales, likely due to fewer launches during the month. Typically catering to luxury buyers, CCR projects saw limited activity compared to other regions.

Highest Transacted Price in September

The highest transacted condominium sale in September took place at 32 Gilstead in the prime district of Novena, with a 4-bedroom unit sold for $14.6 million. The spacious unit, covering 4,209 sq ft, fetched a price of $3,480 psf, underscoring the demand for luxury properties. The buyer was a Singapore Permanent Resident (PR), reflecting the appeal of such properties to high-net-worth individuals.

Positive Rebound Expected

The positive momentum seen in September is expected to continue, driven by upcoming launches such as Norwood Grand and Meyer Blue in October. Additionally, the launch of Union Square Residences in November is anticipated to reinvigorate the market, marking a shift after quieter months. The influx of new launches, coupled with a recent interest rate cut by the US Federal Reserve, is expected to accelerate the recovery in the new home sales segment.

With favorable conditions, the new home sales market is well-positioned for a strong finish to the year, attracting significant interest from homebuyers.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Property Insight

Singapore Property Market Overview 3Q2024: Flash Estimates for HDB and Private Sectors

The 3Q2024 URA and HDB Flash Estimates highlight key trends in Singapore’s real estate market during the third quarter of 2024. The private residential property index recorded a moderation of -1.1% in 3Q2024, contrasting with a 0.9% increase in 2Q2024. For the first nine months of 2024, prices moderated by 1.1%, a stark contrast to the 3.9% growth in the same period in 2023. This moderation was influenced by several factors, including the Hungry Ghost Festival, September school holidays, and limited new launches. Additionally, fewer high-value transactions (especially those priced above $10 million) likely contributed to the slower price growth.

Despite these challenges, the new launch market remained resilient. New home sales in 3Q2024 are expected to reach 1,072 units, a 47.9% quarter-on-quarter growth. The bulk of this growth was driven by the Outside Central Region (OCR), where sales jumped by 65.0%. This strong performance reflects buyer preference for more affordable housing options in areas outside the city center. In contrast, the Core Central Region (CCR) saw a 33.3% decline in sales due to fewer launches.

As buyers anticipate interest rate cuts from the US Federal Reserve, market sentiment may improve. The reduction in borrowing costs could lead to a resurgence in demand, particularly for upcoming projects like Norwood Grand and Meyer Blue. These projects are strategically positioned to benefit from renewed market activity.

The HDB resale market continued to show robust growth. Flash estimates indicate a 2.5% rise in resale prices for 3Q2024, slightly higher than the 2.3% increase seen in the previous quarter. Over the first nine months of 2024, HDB resale prices have risen by 6.8%, compared to 3.8% during the same period in 2023. Larger flat types, particularly 4-room and 5-room units, and newer flats (with leases starting from 2013) have driven this growth. These newer flats saw price increases of 3.7% between 2Q2024 and 3Q2024, reflecting their continued popularity among buyers.

A significant rise in million-dollar HDB transactions was also noted, with approximately 331 such deals in 3Q2024, up from 236 in 2Q2024. However, the impact of the cooling measures introduced in August 2024, including the reduction of the Loan-to-Value limit for HDB loans, is not yet reflected in these figures. The full effects of these policies are expected to become evident in late 4Q2024 or beyond.

As the market approaches the final quarter of 2024, the outlook for both the private and HDB resale markets remains cautiously optimistic. While demand for larger and newer flats continues to support price growth, buyers are encouraged to exercise prudence, considering long-term affordability and the evolving market landscape

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Property Insight

September 2024 GLS Tender Review: Tampines Street 94 & Media Circle Analysis

The September 2024 GLS (Government Land Sales) commentary outlines the tender results for two key sites: Tampines Street 94 and Media Circle.

Tampines Street 94

:

This site, zoned for mixed-use residential and commercial development, attracted six bids. The top bid came from a joint venture between Hoi Hup Realty Pte Ltd and Sunway Developments Pte Ltd, offering $668.3 million (equivalent to $1,004 per square foot per plot ratio (psf ppr)). The second-highest bid by Sing Holdings Residential Pte. Ltd. was just 1.9% lower at $655.6 million ($985 psf ppr), highlighting competitive bidding despite a cautious market.

The keen interest in this site demonstrates continued demand for strategically located mixed-use parcels, offering both residential and commercial potential. The proximity to amenities and the Tampines West MRT station enhances its appeal. Recent mixed-use projects, like J’den, which saw over 80% of units sold at launch, indicate strong market demand. The upcoming Executive Condominium (EC) at Tampines Street 95 is expected to further increase foot traffic and commercial viability for the development, making it an attractive proposition for developers and investors alike.

The Tampines Street 94 development also benefits from its location within a residential area dense with HDB blocks, ensuring a ready customer base for its commercial offerings. Situated near educational institutions like Temasek Polytechnic, St. Hilda’s Secondary School, and others, the site is ideal for families. Given the market conditions, the expected launch price is projected to range between $2,200 to $2,300 psf, aligned with the Outside Central Region (OCR) median price of $2,107 psf as of Q2 2024. This site’s launch could be influenced by the earlier-launched Tampines Avenue 11 project, potentially setting price expectations for buyers.

Media Circle

:

This site, located within the one-north Mediapolis precinct, was tendered for residential use (specifically for long-stay serviced apartments) with commercial space on the first storey. It attracted only one bid, submitted by Frasers Property in collaboration with Padawan MC Pte Ltd and Empire One North Property Pte Ltd, for $120.1 million ($461 psf ppr).

Frasers Property, known for its experience in serviced apartments, sees potential in the site's strategic location, close to media and technology job hubs within the vibrant Mediapolis area. This contrasts sharply with the lack of interest in the Upper Thomson Road (Parcel A) site, which also included a serviced apartment component. The one-north area's connectivity and appeal to expatriates and professionals looking for convenience and proximity to work explain the interest in Media Circle.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Singapore Realtors Inc

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