Developer Sales Plummet 882 M O M Sept Due Lack Launches

The latest developer sales figures from the Urban Redevelopment Authority (URA) have shown a steep decline in new project launches, resulting in the lowest monthly new home sales volume so far this year. According to the data, only 255 units have been sold (excluding Executive Condos) in the month of September, representing a massive 88.2% drop from the previous month.

The figures also revealed a year-on-year decrease of 36.4% compared to the same period last year, where 401 units were sold. The Executive Condo market has also been affected by this downwards trend, with only 15 units sold last month, a 92.3% decrease from the previous month.

According to Marcus Chu, CEO of ERA Singapore, the market has slowed down in September due to the annual Hungry Ghost Month, which started on August 23 and ended on September 21, as well as the September school holiday from September 6 to 14. During this period, developers tend to hold back on launching new projects, resulting in buyers shifting their focus to existing developments.

In terms of the number of units sold, Canberra Crescent Residences was the best-performing project in September, with 28 units sold at a median price of $2,001 psf. This 376-unit development, jointly developed by Kheng Leong Co and Low Keng Huat, launched on August 2 and has sold 150 units (40%). According to caveats, a total of 239 units have been sold (63%) to date.

The second best-selling new project in September was Grand Dunman, which moved 24 units at a median price of $2,508 psf. This 1,008-unit development launched for sale in July 2023 and has sold 867 units (86%) to date, setting an average price of $2,524 psf. According to Chu, Grand Dunman remains a standout development in the Rest of Central Region (RCR), with its prime location near key schools and MRT access continuing to boost buyer confidence.

Other top-performing projects last month include River Green (16 units at $3,201 psf), Tembusu Grand (12 units at $2,393 psf), and Bloomsbury Residences (11 units at $2,548 psf).

On the other hand, the relatively weak performance of the EC market is due to the lack of new EC projects. Half of the sales in this segment last month came from Otto Place, a 600-unit development in Tengah, which only moved eight units.

Otto Place launched for sale in July and has since moved 351 units (58%) at an average price of $1,700 psf. Sales increased to 548 units (90%) after the second round of balloting in August, and as of now, there are 54 units remaining unsold. The eight units sold at Otto Place last month accounted for half of all EC units sold in September.

A notable transaction in the EC market was the sale of a 1,206 sq ft unit at Aurelle of Tampines for $2.12 million ($1,758 psf) on September 4. According to data from Realion (OrangeTee & ETC) Group, this year has seen 287 EC units sold for over $2 million, far surpassing the 65 transactions registered last year and breaking the previous record of 90 transactions in 2023.

In terms of psf prices, 291 EC units were sold for at least $1,800 psf in the first nine months of this year, which is also a record high for the EC segment. The record psf-price for an EC unit was set by a 947-unit development at Otto Place, which transacted for $1.8 million ($1,909 psf) on August 19.

According to Christine Sun, chief researcher and strategist at Realion (OrangeTee & ETC) Group, the affordability of ECs compared to other private homes, as well as the surge in HDB resale prices and the growing number of million-dollar flat sales, have attracted more buyers to the EC market.

The next new EC project to be launched is expected to be the development by a Qingjian-led consortium at Jalan Loyang Besar in Pasir Ris. Chu believes that the project will see strong interest from HDB upgraders living in the East, although the price points may be higher due to increased land and construction costs.

As for the private residential market, the first nine months of this year have seen 7,924 new units sold (excluding ECs), surpassing the 6,626 units transacted throughout last year. Chu attributes the improved performance to the strong pipeline of new launches in recent months, as well as the easing interest rate environment towards the end of the year.

Wong Siew Ying, head of research and content at PropNex Realty, believes that the decline in borrowing rates has bolstered market confidence and improved the affordability of new homes, motivating more buyers to enter the market. She adds that increasingly low interest rates may convince some fence-sitters to make a move, as they anticipate price growth in 2026 when projects with higher land prices are launched.

Singapore’s private residential market has remained resilient despite global uncertainty, with low unemployment and healthy household balance sheets fueling buyer confidence, according to Leonard Tay, head of research at Knight Frank Singapore. He adds that the employment levels are still relatively high, and strong domestic savings provide households with the financial flexibility and confidence to enter the property market.

Tay expects the new home sales in Singapore to surpass 9,000 units for the whole of 2025, noting that the unfolding global macroeconomic headwinds, direction of interest rates, and unemployment levels in Singapore will be key indicators to watch in the months ahead.

The market is expected to see a rebound in October, with the strong sales at Skye at Holland kickstarting the month. The 666-unit development in Holland Village saw a near sellout launch on October 11, moving 658 units (99%) and setting an average price of $2,953 psf.

Upcoming new projects set to launch before the end of the year, include the 426-unit Penrose on Margaret Drive, developed by Hong Leong Holdings, and the 399-unit Faber Residence by GuocoLand, which will launch on October 18. The same date will also see Zyon Grand, a 706-unit development jointly developed by City Developments (CDL) and Mitsui Fudosan (Asia), enter the market. The Sen, a 347-unit development in Upper Bukit Timah jointly developed by Sustained Land, Greatview Development, and H10 Holdings, is also expected to launch before the end of the year.

Chu expects these upcoming projects to see high take-up rates, with buyers showing more interest towards the end of the year. He believes that the global macroeconomic headwinds, direction of interest rates, and unemployment levels in Singapore will be key indicators to watch in the months ahead, with the new homes market expected to exceed 9,000 units sold for the whole of 2025.

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