Modest Growth in New Home Sales
In June 2024, new home sales in Singapore showed a modest growth of 2.2% month-over-month, with 228 units sold, up from 223 in May. The majority of these sales occurred in the Outside Central Region (OCR), which accounted for 57.9% of the total sales. Notable developments contributing to this increase included The Lakegarden Residences, The Botany at Dairy Farm, Hillhaven, Lentor Hills Residences, and Hillock Green. The Rest of Central Region (RCR) and Core Central Region (CCR) followed, contributing 31.1% and 11.0% to the total sales, respectively.
Increased Interest in RCR
The RCR segment saw a significant 34.0% increase in sales from May to June, rising from 53 to 71 units. This growth was driven by developments such as Tembusu Grand, Pinetree Hill, The Continuum, The Landmark, and Grand Dunman. The limited new launches and smaller-sized developments in the first half of 2024 helped sustain interest in these properties, showcasing their lasting appeal.
Best-Selling Projects
The best-selling projects in June highlighted the competitive clustering effect, where developments launched in close proximity can boost each other's sales. The Lakegarden Residences led the sales with 23 units at a median price of $2,119 per square foot (psf). Other top performers included The Botany at Dairy Farm (21 units at $1,979 psf), Hillhaven (18 units at $2,124 psf), and Lentor Hills Residences (14 units at $2,104 psf). This phenomenon is similar to the retail strategy where stores like Watsons and Guardian are located near each other to maximize foot traffic.
Luxury Condo Sales in CCR
Luxury condominium sales in the CCR remained robust, with a notable transaction involving a 4-bedroom unit at Midtown Modern, which sold for $6.7 million ($3,698 psf). The first half of 2024 saw seven new launch condominiums surpass the $10 million mark, consistent with the same period in 2023. Developments such as Skywaters Residences, 32 Gilstead, and Watten House led these high-value transactions, reflecting sustained interest in luxury real estate driven by prime locations, exceptional design, and top-tier amenities.
Upcoming Launches
The second half of 2024 is expected to see a resurgence in market interest with several new property launches. These include Emerald of Katong, The Chuan Park, One Sophia, and Aurea. These fresh offerings are anticipated to generate significant interest due to their unique characteristics and prime locations, rejuvenating the real estate scene after a period of limited new launches.
Conclusion
June 2024's developer sales insights highlight a steady growth in new home sales, driven primarily by the OCR segment. The RCR showed significant sales growth due to sustained interest in key developments. The luxury segment in the CCR continued to attract high-value transactions, reflecting the enduring appeal of prime properties. Looking ahead, the market is poised for rejuvenation with several exciting new launches anticipated in the second half of 2024. Developers and buyers alike can leverage strategic location and timing to capitalize on market dynamics and growth opportunities.
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Prepared By:
Mohan Sandrasegeran
Head of Research & Data Analytics