Huttons’ comments on May 2024 developers’ sales

Launches and Sales
Sales in May 2024 eased to 221 units as developers held back on launches of non-landed projects. This is 26.6% lower month-on-month and 78.7% lower than a year ago.

A few projects were launched for sale in May 2024. The number of units launched in May 2024 was 248, the second lowest number of launched units in 2024. This is around 10.8% lower than the previous month and 84.5% lower year-on-year.

Jansen House sold 3 units at a median price of $2,098 psf while Straits at Joo Chiat moved 2 units at a median price of $2,091 psf.

In the absence of new major non-landed project launches, buyers went house hunting for homes in earlier launched projects.

The Lentor precinct in District 26 clocked in the highest number of sales at 69 units in May 2024. Lentor Hills Residences, Hillock Green and Lentor Mansion were the top 3 best selling projects in the Lentor precinct. Out of the 2,477 units in Lentor, almost 75% or 1,844 units have been sold. The absence of a new launch for more than 10 years may have led to pent up demand and the creation of a private residential enclave in Lentor could have appealed to many buyers.

The next most popular district was District 23. Hillhaven, The Botany at Dairy Farm and The Myst topped the best-selling projects in the district. Out of the 1,135 units in District 23, more than 60% or 716 units have been sold.

Top Projects by Sales in May 2024

Source: URA, Huttons Data Analytics as of 18 Jun 2024

Purchases by Market Segments and Price Range
The OCR accounted for 63.8% of units sold while the RCR made up 24.0% in May 2024. The CCR saw 27 units sold, translating to a market share of 12.2%.

In the CCR, a 7,761 sq ft in Skywaters Residences was sold for $47.342 million or $6,100 psf in May 2024. Since 1995, there have only been a handful of deals priced at $6,000 psf or higher.

About 32.1% of the units sold in May 2024 are below $2 million while 37.2% are between $2 million and less than $2.5 million. These are attractive price points for many buyers in the market.

Singaporeans made up 82.6% of purchases in May 2024 while Permanent Residents (PRs) made up 14.7%.

Purchases by Residential Status and Price Range in May 2024

Source: URA, Huttons Data Analytics as of 18 Jun 2024

Purchases by Foreigners
The number of purchases by foreigners slipped in May 2024, making up 6 or 2.8% of total transactions. 4 of the purchases are in the CCR, 1 each in the RCR and OCR.

Proportion of Purchase by Foreigners

Source: URA, Huttons Data Analytics as of 18 Jun 2024

Outlook
There will be no launches in June 2024 due to the school holidays. Sales in June 2024 may be similar to May 2024, bringing sales in 2Q 2024 to an estimated 600 to 700 units.

In July 2024, there will be 2 major non-landed launches – Kassia and SORA.

Kassia is probably the last freehold project in the Flora Drive private residential enclave. There are a total of 276 units. Buyers can enjoy superb convenience with a plethora of shopping destinations and amenities located nearby. From the iconic Jewel Changi Airport to the bustling Tampines Mall, Tampines One, Komo Shoppes and Loyang Point, residents can relish in dining, shopping, and entertainment experiences mere moments away from home.

The market will also see the launch of a highly anticipated launch next to Jurong Lake Gardens in July 2024. Sora will be the largest new launch in Jurong Lake District. There will be 4 iconic towers of 20 and 12 storeys with a 300m frontage overlooking Jurong Lake Gardens. There will be 440 units spread across 1 bedroom + study to 5-bedroom types. According to the developer, prices start from $1,850 psf or starting from just under $1 million for a 538 sq ft, one bedroom plus study unit.

Barring unforeseen circumstances, developers may sell up to 7,000 new homes while prices are expected to be stable, increasing up to 5% in 2024.

Potential Upcoming Projects in 2H 2024

Source: URA, Huttons Data Analytics as of 17 Jun 2024