Huttons’ comments on July 2024 developers’ sales

Launches and Sales
The resumption of project launches after the June school holidays propelled developers’ sales by 2.5 times to 571 units in July 2024 from 228 units in June 2024.

Two major non-landed projects in the OCR – Kassia and Sora were launched in July 2024. In total, developers launched 616 units for sale in July 2024, 422.0% higher than June 2024 and 71.4% lower than the same period a year ago.

Kassia, the last freehold project in the Flora Drive private residential enclave, sold 154 units in July 2024. Based on caveats, 152 units sold were priced at the sweet spot pricing of $2 million and below.

Since 2021, there has been no launch of 999-year/freehold major non-landed residential projects in the OCR, making Kassia a rare freehold major non-landed launch in the OCR.

The 1- and 2-bedroom units were most popular. Ever since URA implemented a minimum dwelling size in 2018, the supply of 1-bedroom units has dwindled. Kassia offers buyers a rare opportunity to own a freehold 1-bedroom unit from $883,000. Of the 1-bedroom and 1+Study type units, Huttons Data Analytics estimates that the majority of those sold are $1 million and below. More than 70% of the 1-bedroom and 1+Study units are sold.

Sora, the largest new launch in Jurong Lake District, sold 103 units in July 2024.

The appeal of having a National Garden at the doorstep of their homes drew buyers to Sora. Buyers saw the potential of living in Jurong Lake District, the largest business district outside the central area.

The 1+Study and 2-bedroom units were the most popular with owner-occupiers and investors. More than 90% of the units sold were the 1+Study and 2-bedroom units, and these were in the sweet spot pricing of below $2 million.

Top Projects by Sales in July 2024

Source: URA Huttons Data Analytics as of 15 Aug 2024

Purchases by Market Segments and Price Range
The launch of two major non-landed projects in the OCR pushed up the proportion of sales in the market segment to 77.8% in July 2024, from 56.1% in June 2024. The RCR made up 18.6% and the CCR 3.7%.

As Singaporeans usually made up the core of buyers in OCR projects, the proportion of Singaporeans also increased to 86.7% in July 2024 from 82.4% in the previous month.

With more than 95% of the units sold in Kassia and Sora priced below $2 million, the proportion of these units accounted for 61.5% of transactions in July 2024.

Purchases by Residential Status and Price Range in July 2024

Source: URA Huttons Data Analytics as of 15 Aug 2024

Purchases by Foreigners
The number of purchases by foreigners slowed to 6 in July 2024, compared to 11 in Jun 2024. The purchases were equally split across the 3 market segments.

Proportion of Purchase by Foreigners

Source: URA, Huttons Data Analytics as of 15 Aug 2024

Outlook
There is unlikely to be any project launch in August 2024 due to seasonal factors like the lunar seventh month.

The impact will be felt in August developers’ sales volume which may possibly be around 150 to 250 units.

Projects that may be launched for sale in September 2024 include 8@BT, Meyer Blue and Union Square Residences.

8@BT is a short 2 min walk to Beauty World MRT station and opposite the upcoming Bukit V Mall. There are a total of 158 units from 1-bedroom to 4-bedroom and penthouse.

Union Square Residences is a highly anticipated project at Havelock Road. This unique development is near to 3 train stations – Clarke Quay, Chinatown and Fort Canning.

For those who prefer staying in the East can look forward to Meyer Blue. Meyer Blue is a luxury project with 226 residential units, ranging from two to five-bedroom units and two penthouses.

With more launches lined up in September 2024, developers’ sales will increase in tandem.

Barring unforeseen circumstances, developers may sell up to 5,500 new homes while prices are expected to be stable, increasing up to 4% in 2024.

Potential Upcoming Projects in 2H 2024

Source: URA Huttons Data Analytics as of 15 Aug 2024