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Developers launched 134 units and sold 437 units in Aug. Sales in Aug tumbled by 47.6% month-on-month and 64.1% lower year-on-year. This is the 12th month that monthly sales has exceeded the launch units, reflecting the strong demand for private homes in the market.
The Lunar Seventh Month which straddled almost the whole month of August resulted in developers deferring the launch of new projects. The number of units launched for sale fell by 66.7% month-on-month to 134. This is the lowest units launched for sale since Sep 2017.
The Core Central Region (CCR) saw 220 units sold while the RCR moved 127 units and the OCR 90 units. It is the first time since Oct 2017 that sales in the CCR exceeded 50% of monthly sales. Buyers are shifting their focus to the CCR as the median price per sq ft between the CCR and RCR has narrowed to 14.9% in Aug 2022 compared to 41.6% in Jan 2022.
Price gap between CCR and RCR non-landed projects
Source: URA, Huttons Research as of 15 Sep 2022
There were more purchases by foreigners in Aug. The proportion shot up to 13.3%, the highest since March 2016.
Proportion of Purchase by Foreigners
Source: URA, Huttons Research as of 15 Sep 2022
Top 10 Projects by Sales in Aug 2022
Source: URA, Huttons Research as of 15 Sep 2022
The top projects with sales to foreigners in Aug are predominantly in the CCR.
Top 5 Projects with sales to foreigners in Aug 2022
Source: URA, Huttons Research as of 15 Sep 2022
10.6% of the transactions in Aug are priced below $1.5 million, 35.5% are between $1.5 million to $2 million and 53.9% above $2 million. The $2 million mark is going to be the norm as prices creep up and more inventory in the CCR gets sold.
Purchases by Residential Status and Price Range in Aug
Source: URA, Huttons Research as of 15 Sep 2022
Proportion of Sales $2 million and above
Source: URA, Huttons Research
Sales in September are estimated to be between 900 and 1,000 as major launches like Sky Eden@Bedok and Lentor Modern are pushed out. Sky Eden@Bedok has sold more than 70% of its units on Sep 7 at an average price of $2,100 psf. Lentor Modern, the only integrated mixed-use development in the Lentor precinct should see similar sales on launch day as well.
In Oct, the market will see more launches – Gems Ville, K Suites, Mattar Residences and Sophia Regency. These boutique projects will offer buyers and investors variety across the island.
The first EC in Tengah, Copen Grand is likely to be launched in October as well. It should see healthy interest from buyers in Bukit Batok, Choa Chu Kang, Jurong East and Jurong West.
Overall, the level of purchases by foreigners in the first eight months of 2022 stood at 6.5%. This could stabilise to between 5% and 6% for 2022.
In the first eight months of 2022, developers have sold an estimated 5,493 units. For the full year, Huttons estimate sales of around 9,000 units and price increase of up to 8%.
