Huttons’ Comments On March 2023 Developer’s Sales

17 April 2023

Developers’ sales in March increased by 13.6% month-on-month to 492 units but 24.8% lower compared to a year ago. A total of 573 units were launched for sale, 42.9% higher than February 2023 and 85.4% higher than a year ago.

Sales in March 2023 was led by the launch of The Botany at Dairy Farm in the Outside Central Region (OCR). The project sold 184 units at a median price of $2,068 psf. The one and two bedrooms were almost sold out. Investors zoomed in on the one-bedroom units probably for the rental demand from the German European School next door. Due to changing demographics to a smaller family nucleus, many buyers went for the two-bedroom units. There were some upgraders who bought the typical 3-bedroom units for more space.

The Botany at Dairy Farm accounted for 37.4% of total sales in March. As it was in the OCR, it pulled up the proportion of sales in the OCR to 46.7% in March. A total of 230 units were sold in the OCR in March.

Sales Breakdown by Region in March

Source: URA, Huttons Research as of 17 Apr 2023

The Core Central Region (CCR) was the next most active region with 197 units sold. Projects in the CCR dominated the Top 10 bestselling projects in March.

Top 10 Projects by Sales in March

Project Name Units Sold in the Month Median Price ($psf) Lowest Price ($psf) Highest Price ($psf)
THE BOTANY AT DAIRY FARM 184 2068 1712 2297
LEEDON GREEN 26 2957 2539 3467
THE LANDMARK 24 2626 2276 2681
HYLL ON HOLLAND 18 2875 2636 3090
MIDTOWN MODERN 13 2822 2583 3174
HAUS ON HANDY 11 2731 2609 2919
KLIMT CAIRNHILL 10 3648 3371 3884
ONE BERNAM 10 2637 2393 2812
PEAK RESIDENCE 10 2452 2354 2689
KOPAR AT NEWTON 9 2469 2378 2703
RIVIÈRE 9 3180 2855 3331
THE AVENIR 9 3099 3025 3125
PICCADILLY GRAND 8 2008 1950 2078

Source: URA, Huttons Research as of 17 Apr 2023

Foreigners made up 7.8% of sales in March, higher than the level of foreigner purchases for the whole of 2022. 73.7% of the units purchased by the foreigners were in the CCR.

Proportion of Purchase by Foreigners

Source: URA, Huttons Research as of 17 Apr 2023

46% of the sales in March cost $2 million and more, a reflection of the amount of liquidity in the market.

Purchases by Residential Status and Price Range in March

<$1.5 million $1.5 to <$2 million $2 to <$5 million >$5 million Total
Singaporeans 103 113 153 9 378
Permanent Residents 16 19 33 3 71
Foreigners 4 9 17 8 38
Companies 2 2
Total 123 141 203 22 489

Source: URA, Huttons Research as of 17 Apr 2023

Launches in April and May include Blossoms by the Park, Newport Residences, The Continuum, The Giverny Residences and The Reserve Residences including Tembusu Grand which had already been launched.

Tembusu Grand achieved a strong first weekend sales of 340 units which makes it the bestselling project in the RCR to date. There had not been a large project launch of this land size since Haig Court in 2004. Hence besides the desire to live in District 15 and the Katong area, pent-up demand could be another factor behind the strong sales. Tembusu Grand is less than 10 mins walk to the upcoming Tanjong Katong MRT station and well-linked to expressways like (ECP), (PIE) and (KPE) and a short drive to CBD, Marina Bay, Singapore Sports Hub and Changi Airport.

The Continuum is the only freehold project with a land area above 200,000 sq ft in District 15 in 2023. The strong set of sale numbers for Tembusu Grand indicates that there is pent-up demand for a large project.

Newport Residences is probably the only freehold project in the Downtown Core planning area in 2023. It offers buyers spectacular views of the city and the sea. It is Singapore’s first private residence as well as the first mixed development comprising serviced apartments, office and restaurants (F&B) to attain the prestigious BCA Green Mark Platinum Super Low Energy Awards.

The Giverny Residences is a boutique freehold project offering luxury large format units located in District 10 within 1km to Anglo Chinese School (Primary), Singapore Chinese Girls Primary School and a 5 mins’ stroll to Stevens MRT. Buyers can choose to buy individual units or the whole development.

There is very limited supply around Blossoms by the Park and The Reserve Residences. Private homes in the one-north area tend to see strong demand and good rents. Blossoms by the Park is less than 300m to Buona Vista MRT station and Fairfield Methodist Primary School is within 1km. The Reserve Residences is an integrated mixed-use development in the heart of Bukit Timah. It will be directly linked to Beauty World MRT station and is opposite Pei Hwa Primary School.

Developers are estimated to have sold 1,318 units in 1Q 2023 against 1,384 launched units. This is 91.0% higher than 4Q 2022’s 690 units. The strong sales seen for the launches in 2023 is an indication that the desire to invest in properties is robust. Unsold units in the market remained low and there is broad based support for prices in the market, thus giving buyers the confidence to enter the market. Barring unforeseen circumstances, developers are estimated to sell around 9,000 units with prices increasing up to 8% in 2023.