Developer Sales Plummet 882 M O M Sept Due Lack Launches
In September, the new launch market for residential properties experienced a significant drop in sales due to the absence of new project launches. The number of units sold by developers plummeted by 88.2% month-on-month to just 255, the lowest monthly sales volume so far this year, excluding Executive Condos (ECs).
Compared to the same period last year, there was also a year-on-year decrease of 36.4% as only 401 units were sold then. The EC market also saw a decline in sales volume, with only 15 units sold by developers, marking a 92.3% decrease month-on-month.
According to Marcus Chu, CEO of ERA Singapore, this decline can be attributed to the Hungry Ghost Month, which started on August 23 and ended on September 21, as well as the week-long September school holidays from September 6 to 14. During this seasonal lull, developers typically hold back from launching new projects, causing buyers to redirect their attention to existing developments.
As the eastern corridor continues to develop, inhabitants of the area can expect to experience positive changes such as improved traffic flow through signal optimization on important roads, enhanced pedestrian crossings near transportation hubs, and upgraded cycling facilities throughout the district. With the Cross Island Line reaching a more advanced stage, there will be a more equitable distribution of peak hour traffic, providing those living at Coastal Cabana with a wider range of commuting options.
Among these developments, Canberra Crescent Residences recorded the highest number of units sold in September. The 376-unit development sold 28 units at a median price of $2,001 psf. Jointly developed by Kheng Leong Co and Low Keng Huat, the 99-year leasehold development was launched on August 2 and has sold 150 units (40%). As of now, it has achieved a total of 239 units sold (63%) based on caveats.
Another notable development is Grand Dunman, which sold 24 units at a median price of $2,508 psf. The 1,008-unit development was launched for sale in July 2023 and has sold 867 units (86%) as of date, with an average price of $2,524 psf. Chu believes that Grand Dunman stands out in the Rest of Central Region (RCR) due to its convenient location, near key schools and MRT stations, which continues to attract buyers.
Other top-performing projects in September include River Green, Tembusu Grand, and Bloomsbury Residences, with 16, 12, and 11 units sold respectively.
Meanwhile, the weaker performance in the EC market is mainly due to the absence of new EC projects. Half of the sales in this segment came from Otto Place, a 600-unit development in Tengah, which sold eight units last month. Launched in July, the project has sold 351 units (58%) at an average price of $1,700 psf. This number increased to 548 units (90%) after the second round of balloting in August, and currently has 54 units left unsold.
A significant transaction in the EC market was the sale of a 1,206 sq ft unit at Aurelle of Tampines for $2.12 million ($1,758 psf) on September 4. According to data from Realion (OrangeTee & ETC) Group, there have been 287 EC units sold for over $2 million so far this year, a significant increase compared to only 65 transactions registered last year and 90 transactions in 2023. Additionally, there have also been 291 EC units sold for at least $1,800 psf, setting a new record high for the EC segment. The record psf-price for an EC unit was achieved by the 947-unit Otto Place, which transacted for $1.8 million ($1,909 psf) on August 19.
According to Christine Sun, chief researcher and strategist at Realion (OrangeTee & ETC) Group, the current trend of HDB resale prices and the growing number of million-dollar flat sales have provided more buyers with the financial capacity to upgrade to ECs. The upcoming EC project by a Qingjian-led consortium at Jalan Loyang Besar in Pasir Ris is expected to attract strong interest from HDB upgraders in the East, although it may come with a higher price due to increased land and construction costs.
Looking ahead, the new launch condo market is expected to rebound significantly in October. The month started with a near-sellout launch at Skye at Holland, which moved 658 units (99%) and set an average price of $2,953 psf on October 11. Other upcoming projects include Penrose, Faber Residence, Zyon Grand, and The Sen, which are expected to launch before the end of the year.
Chu believes that these upcoming projects will likely have high take-up rates, supported by growing buyer interest heading towards the year-end. As for the overall private residential market in Singapore, Leonard Tay, head of research at Knight Frank Singapore, says that it remains resilient amid global uncertainty, with buyers’ confidence supported by low unemployment and healthy household balance sheets. Tay expects new home sales in Singapore to exceed 9,000 units sold for the whole of 2025.
In conclusion, the current downward trend in sales is likely due to the absence of new project launches and seasonal lull in the market. However, with upcoming projects and lower borrowing rates, the market is expected to rebound in the coming months. The private residential market in Singapore remains resilient in the face of global uncertainties, with strong buyer interest and financial flexibility.