Huttons’ comments on Dec 2023 Developer’s Sales

Launches and Sales
Developers sold an estimated 135 units in December 2023, 82.8% lower month-on-month and 20.6% lower year-on-year. This is the lowest monthly sales since Jan 2009 where only 108 units were sold.

The year end lull coupled with no major project launches were the two main reasons for the slower sales in December 2023.

In 2023, developers are estimated to have sold an estimated 6,451 units, 9.1% lower than 2022. This is an encouraging set of numbers considering that the Government raised ABSD for all buyers buying either their first or subsequent residential property in April 2023.

Purchases by Foreigners
In December 2023, it is estimated that foreigners bought 4 residential properties, making up 3.0% of monthly sales. 4 of the purchases by foreigners are in the CCR with 1 in the RCR.

Foreigners from Hong Kong and USA bought 1 residential property each while 2 were bought by foreigners whose nationalities are un-specified at the moment. Despite the hefty 60% ABSD, there are still foreigners who view the Singapore residential property market as a safe haven amidst the geopolitical uncertainties.

Nevertheless, the higher ABSD on foreigners did take away a substantial chunk of demand from the market.

From January to May 2023, there were an estimated 235 purchases by foreigners. This plunged to 80 transactions from June to December 2023. It showed the effectiveness of the policy in reducing the purchases by foreigners.

Proportion of Purchase by Foreigners

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

Purchases by Market Segments and Price Range
Buying activities in December 2023 remained concentrated in the Outside Central Region and Rest of Central Region.

45 units were sold in the OCR while 66 units were sold in the RCR in December 2023. Buyers scooped up 24 units in the CCR. The top 3 best-selling projects in November 2023 are The Continuum, The Landmark and The Myst.

The top transacted units in terms of price in December was 2 units at Watten House which were sold to a foreigner and a Permanent Resident.

ECs continued to chalk up good sales in Dec 2023, moving 17 units. Their affordable price range offer buyers a good entry point into private residential living. There will only be one EC in 2024 hence buyers are looking at ECs launched earlier for more choices.

Purchases by Residential Status and Price Range in Dec

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

Top Projects by Sales in Dec

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

Outlook
There will be 3 major non-landed project launches in the next two weeks of Jan 2024 – Hillhaven, Lumina Grand (EC) and The Arcady at Boon Keng.

Hillhaven by Far East Organization and Sekisui House is nestled in the tranquil private residential enclave in Hillview. It is a mere 4 minutes’ walk to Hillview MRT station and a short 5 minutes’ drive to the BKE. Amenities are aplenty in the area with HillV2 across the road, Dairy Farm Mall, Hillion Mall, Junction 10 and The Rail Mall nearby. The upcoming Beauty World integrated transport hub and Bukit V mall is a short drive away. With no new supply of private homes in Hillview, it underscores the unique and exclusive nature of this precinct as a residential enclave.

The Arcady at Boon Keng is a rare city fringe (RCR) freehold project that is less than 500m from Boon Keng MRT station. Major expressways like PIE and CTE are easily accessible. St Andrews Junior School, Hong Wen School (SAP) and Bendemeer Primary School are within 1km. It is near amenities like Bendemeer wet market and food centre.

Lumina Grand is the only EC in 2024. It is within 1 km to the future Anglo-Chinese School (Primary) and walking distance to the future Tengah Park MRT Station. It is close to the Jurong Innovation District and Jurong Lake District. Buyers can get to other parts of the island via the PIE and KJE. The future Tengah Town Centre is nearby offering amenities like a community club, polyclinic and a bus interchange.

In 1Q 2024, up to 3,332 units across 13 projects may be launched for sale. Ardor Residence and The Hillshore may be launched in Jan 2024 while Arina East Residences, Lentoria and The Hill @one-north showflats may be open in Feb 2024.

Barring unforeseen circumstances, prices are expected to be stable, increasing up to 5% in 2024.

Potential Upcoming Projects in 1Q 2024

* in alphabetical order followed by chronological order
Source: URA, Huttons Data Analytics as of 15 Jan 2024