New private home sales in July surge to highest since November 2021

SINGAPORE: Sales of new private homes in Singapore soared in July, hitting its highest level since November 2021, according to data released by the Urban Redevelopment Authority (URA) on Tuesday (Aug 15).

Excluding executive condominiums, the 1,412 units sold marked a significant jump from the 278 units sold in June.

The figure was also 68.9 per cent more than the 836 units sold in the same month last year.

Analysts said the increase was driven by four major project launches after the June holidays: Grand Dunman, Lentor Hills Residences, Pinetree Hill and The Myst. 

"The four major non-landed project launches in July accounted for 82.1 per cent of July’s total sales," said Huttons Asia senior director Lee Sze Teck. 

A total of 2,156 units were launched in July, the highest number since January 2021 when 2,600 units were released. In July 2022, 408 units were launched.

OrangeTee and Tie senior vice president Ms Christine Sun said: "New home sales tend to be volatile, which fluctuates according to the number of new projects launched in a month."

Analysts added that the lunar seventh month, which is from Aug 16 to Sep 14, also played a part in July's sales.

Ms Sun said that developers brought forward the sales launches ahead of the lunar seventh month, which is deemed by some buyers to be an "inauspicious period to purchase a big-ticket item". 

Mr Lee added: "Most developers will avoid project launches during this period. That is probably why there will be another five launches, including one executive condominium, in the first 2 weeks of August."

"SPOILT FOR CHOICE"

Analysts forecast sales to remain resilient as more projects are scheduled to launch.

With the wide selection of projects on the market, as well as upcoming launches, ERA Realty Network’s key executive officer Eugene Lim said homebuyers and investors are "spoilt for choice". 

"Though some homebuyers may not commit immediately ... they are likely to buy sooner or later. This is especially so with the current ABSD (additional buyer’s stamp duty) regime and homebuyers that do not need to pay ABSD have only have one bullet and they want to make the best use of it,” he said. 

However, Ms Sun said it is unlikely for August sales to surpass that of July's, citing a lack of "many new mega project launches of above 1,000 units".

Mr Lee said that for the period from January to August, developer sales of more than 5,000 units are expected.

He added: "With up to 12 new launches in the pipeline from September 2023, developer sales could end the year at around 8,000 units, still higher than 2022's 7,099 units despite the economic uncertainties."

Edmund Tie’s head of research and consulting Lam Chern Woon, on the other hand, has lowered the full-year sales forecast to between 6,500 and 7,500 units - down from between 7,000 to 8,000 units previously.

Attributing this to a noticeably lower take-up rate among recent launches, he said: "The uncertain macro environment and elevated financing costs, coupled with slowing public resale market sales volumes act as a curb on demand and price growth." 

He added that overall property prices "may trade sideways" in the second half of 2023 due to a tighter financing environment. 

"Nevertheless, the overall property market remains fairly stable, underpinned by a relatively tight labour market and organic housing demand."