After a blistering hot May where developers’ sales exceeded 1,000 units, June was decidedly quieter due to the school holidays and the lack of major launches. Developers sold 278 units in June, 73.2% lower month-on-month and 43.0% lower year-on-year.
The absence of major non-landed project launches in June led to a sharp plunge in units launch to only 31. This is 98.1% lower than May 2023 and 92.2% lower year-on-year. This is the lowest since Dec 2022 where only 45 units were launched for sale and is a reflection of the tight unsold supply in the market.
Lavender Residence, a boutique 17-unit project along Lavender Street was launched in June at a median price of $1,972 psf. The attractive price per sq ft and quantum for a freehold project in the RCR saw buyers picking up 8 units or 47.1% of the total number of units.
Despite the slower month and cooling measures, projects in the Core Central Region (CCR) account for 40.3% or 112 units of total sales in June. The CCR usually had more foreigners buying compared to the RCR and OCR. However, the cooling measures on Apr 27 reduced the number of purchases by foreigners in the CCR to only 7 units in June, the lowest since Feb 2021 where only 6 foreigners picked up homes in the CCR. The proportion of buying by foreigners in the CCR plunged to 6.3% in June, the lowest since Apr 2021 where purchases by foreigners made up 5.4%. Singaporeans accounted for close to 80% of purchases in the CCR in June. Singaporeans are trading up to a CCR home due to the narrowing price gap between CCR and RCR homes.
Proportion of Purchases by Residential Status in CCR in 2023
Source: URA, Huttons Research as of 17 Jul 2023
Top 10 Projects by Sales in Jun
| Project Name | Region | Units Sold in the Month | Median Price ($psf) | Lowest Price ($psf) | Highest Price ($psf) |
|---|---|---|---|---|---|
| THE RESERVE RESIDENCES | RCR | 79 | 2,646 | 2,262 | 2,873 |
| LEEDON GREEN | CCR | 14 | 2,812 | 2,452 | 3,127 |
| VAN HOLLAND | CCR | 13 | 2,692 | 2,484 | 3,064 |
| THE ATELIER | CCR | 12 | 2,663 | 2,481 | 2,841 |
| PULLMAN RESIDENCES NEWTON | CCR | 9 | 3,188 | 2,983 | 3,334 |
| GRANGE 1866 | CCR | 8 | 3,013 | 2,866 | 3,390 |
| LAVENDER RESIDENCE | RCR | 8 | 1,972 | 1,710 | 2,238 |
| ONE PEARL BANK | RCR | 8 | 2,673 | 2,605 | 2,773 |
| PICCADILLY GRAND | RCR | 8 | 2,041 | 1,821 | 2,154 |
| BLOSSOMS BY THE PARK | RCR | 7 | 2,571 | 2,242 | 2,730 |
| HYLL ON HOLLAND | CCR | 7 | 2,899 | 2,812 | 2,903 |
| THE LANDMARK | RCR | 7 | 2,690 | 2,575 | 2,868 |
| CAIRNHILL 16 | CCR | 6 | 2,922 | 2,753 | 3,215 |
| LIV @ MB | RCR | 6 | 2,433 | 2,374 | 2,554 |
| ONE HOLLAND VILLAGE RESIDENCES | CCR | 6 | 2,988 | 2,819 | 3,083 |
| THE CONTINUUM | RCR | 6 | 2,792 | 2,686 | 2,905 |
| LENTOR MODERN | OCR | 5 | 2,125 | 2,023 | 2,192 |
| ONE BERNAM | CCR | 5 | 2,661 | 2,377 | 2,799 |
| TEMBUSU GRAND | RCR | 5 | 2,490 | 2,427 | 2,730 |
| KLIMT CAIRNHILL | CCR | 4 | 3,420 | 3,246 | 3,776 |
| ONE DRAYCOTT | CCR | 4 | 3,276 | 3,032 | 3,523 |
| THE AVENIR | CCR | 4 | 3,144 | 3,144 | 3,192 |
Source: URA, Huttons Research as of 17 Jul 2023
On a whole, the number of foreigners purchasing residential properties in Singapore continued to decline in June after the cooling measures. Based on caveats from URA, there were only 13 such purchases, 56.7% lower than May 2023’s 30 transactions. The lowest number of purchases by foreigners was in Apr 2020 which was the circuit breaker period. Despite the cooling measures, the continued purchases by foreigners showed that the local property market is still attractive to them.
On a proportion basis, the percentage of purchases by foreigners shot up to 4.7% in June. This is likely due to the low total number of purchases in June which amplified the percentage for foreigners.
Proportion of Purchase by Foreigners
Source: URA, Huttons Research as of 17 Jul 2023
Top 3 Projects Purchased by Foreigners
| Project | Region | Units | Overall Units Sold in Jun |
|---|---|---|---|
| THE RESERVE RESIDENCES | RCR | 4 | 79 |
| KLIMT CAIRNHILL | CCR | 2 | 4 |
| ONE HOLLAND VILLAGE RESIDENCES | CCR | 2 | 6 |
| ONE PEARL BANK | RCR | 2 | 8 |
| ONE BERNAM | CCR | 1 | 5 |
| PULLMAN RESIDENCES NEWTON | CCR | 1 | 9 |
| THE AVENIR | CCR | 1 | 4 |
Source: URA, Huttons Research as of 17 Jul 2023
With sales in the CCR making up 40.3% of total sales in June, the proportion of sales $2 million and above jumped to 64.6% compared to only 46.3% in May.
Purchases by Residential Status and Price Range in Jun
| <$1.5 million | $1.5 to <$2 million | $2 to <$5 million | >$5 million | Total | |
|---|---|---|---|---|---|
| Singaporeans | 11 | 75 | 144 | 4 | 234 |
| Permanent Residents | 1 | 7 | 20 | 2 | 30 |
| Foreigners | – | 4 | 7 | 2 | 13 |
| Companies | 0 | ||||
| Total | 12 | 86 | 171 | 8 | 277 |
Source: URA, Huttons Research as of 17 Jul 2023
Four projects, Grand Dunman, Lentor Hills Residences, Pinetree Hill and The Myst, have already been launched for sale in July. These 4 projects have collectively sold more than 1,100 units on their launch weekend. Hence Huttons estimate developers’ sales in July to be between 1,200 and 1,400 units.
The strong sales at these 4 projects have boosted the confidence of buyers looking into buying a private residential unit whether it’s for investment or own stay as the take up across various unit types and sizes at all 4 projects are very strong and healthy.
Upcoming launches in Aug include Altura (EC), Mattar Residences, Orchard Sophia, The Arden, and The Lakegarden Residences.
There had not been an EC in Bukit Batok for 22 years. Furthermore, ECs are given upfront remission on ABSD hence Altura is likely to see strong interest from first time buyers and HDB upgraders.
Mattar Residences is a freehold bespoke development within walking distance to Mattar MRT station. Buyers who are looking for a ready to move-in new home will be attracted to Mattar Residences as it is estimated to obtain its TOP in July 2023.
Orchard Sophia is a freehold project in the private Sophia Road residential enclave in District 9. It is within walking distance to Dhoby Ghaut MRT interchange and Plaza Singapura.
The Arden is a 99-year leasehold project along Phoenix Road. The last launch in this area was Phoenix Residences in Dec 2020. The Arden should see healthy interest.
The Lakegarden Residences will be the first private residential launch besides Jurong Lake and the rarity of living besides Jurong Lake will pique buyers’ interest.
The US inflation rate has slowed to 3.0% in June 2023, down from a 40-year high of 9.1% a year ago. This may mean that the monetary tightening by the US FED may be ending and interest rate increases may take a pause. This will boost the property market.
Developers are estimated to sell almost 3,500 units in 1H 2023 and more than 4,700 units in the first seven months of 2023. With more launches in the pipeline, the market is on track to sell around 8,000 units with prices increasing up to 5% in 2023.