November saw a significant rebound in private home sales, snapping a three-month streak of tepid activity. Thanks to the highly anticipated launches of suburban condominiums – J’den in Jurong East, Hillock Green in Lentor Central, and the luxury project Watten House in the prime district – the market saw a remarkable uptick.
The market was ripe with pent-up demand due to a dearth of new launches in September and October. This led to an astonishing 286% surge in sales from October, reaching a four-month high of 784 units sold in November. The three new projects were responsible for nearly 73% of November’s overall sales, marking a threefold year-on-year increase.
CapitaLand Development’s J’den, with its 368 units, set a new benchmark median price of $2,475 per square foot (psf) for suburban private housing projects. The scarcity of new launches in Jurong East and the potential growth of Jurong Lake District played significant roles in this impressive performance, analysts observed.
Developers placed a whopping 970 new units for sale in November, a stark contrast to just 54 units in October. The newlaunches – J’den, Hillock Green, and Watten House in Bukit Timah – made up 97% of all units launched. Including executive condominiums (ECs), new home sales saw a 257% jump to 800 units month-on-month, and a 79% increase from the previous year.
The suburban market was the star of November, with transactions soaring to 539 units from just 76 in October. J’den emerged as the best-selling new launch of 2023, with more than 89% of its units sold to date, while Hillock Green also saw significant interest. PropNex head of research and content, Wong Siew Ying, highlighted this impressive performance.
Hillock Green’s 474 units saw a strong take-up of 132 units (27.8%), despite the upcoming supply in the Lentor area. JLL’s head of residential research for Singapore, Chia Siew Chuin, pointed to the shift in sales patterns, with the largestproportion of sales in November falling in the $1.5 million to $2 million range, largely due to J’den and Hillock Green.
Watten House exceeded expectations, with 109 units of its 180-unit project snapped up at a median price of $3,199 psf. Its freehold status, limited new supply in the vicinity, and proximity to amenities and popular schools made it a hot commodity, despite the April cooling measures.
Looking ahead, the market is likely to see subdued sales in December, with a slew of new launches expected in 2024.However, weak market sentiment and soft employment conditions might delay many launches to the second quarter and beyond, according to Mogul.sg’s chief research officer, Nicholas Mak.
The possibility of easing interest rates in the coming months offers a glimmer of hope, potentially lowering borrowing costs for homebuyers. If Singapore’s economy and employment market improve in 2024, it could help boost housing demand.
Ms. Song also foresees continued caution in the first half of 2024 due to worries about job security, elevated interest rates, and slowing global growth. However, a recovery in Singapore’s exports and a drop in interest rates in the latter half of the year could brighten the outlook.
January 2024 will see the launch of several new developments, including city fringe projects The Arcady @ Boon Keng and The Hillshore in Pasir Panjang, suburban condos Hillhaven in Hillview Rise and Lentoria in Lentor Hills Road, and Lumina Grand EC in Bukit Batok. Collectively, these projects will offer over 830 private residential units and 512 new ECs, adding fresh options for prospective buyers.
In summary, while 2023 ends on a low note, the property market holds potential for recovery in 2024, contingent on economic and employment conditions. The robust response to November’s new launches suggests that demand remains strong, setting the stage for an eventful year ahead in real estate.
