Developers’ new home sales in 2023 are at their lowest level since 15 years due to December downtime

The number of NEW private homes sold in December was the lowest in 15 years. This year’s total is also the weakest in eight years.

Sales slumped last year as developers held off on new projects due to market cooling measures.

The average take up rate for new projects in the first month after their launch has also decreased from 64% in 2021 to 72% in 2022 and finally, 55% in 2023.

The Urban Redevelopment Authority released data on Monday (15 Jan) showing that developers had sold 135 units by December 2023. This excludes executive condominiums.

The December sales were 83% lower than November 2023’s 784 units and 21% lower than 170 units in the previous month.

The Chuan Park at Lentor

New home sales fell to their lowest level in January 2009, when only 108 units were sold.

In 2023, developers sold 6,452 homes, a figure that is 9.1% lower than the 7,099 sold in 2022. This number is also about half of the total sold in 2021.

The number of new homes sold in 2008 was the lowest since 15 years.

The decline in sales last year could be attributed a number of factors including the cooling measures for property that will take place in April 2023. Other factors include macroeconomic uncertainty and rate increases.

This year’s total is an encouraging number, especially when you consider that in April 2023 stamp duties will be raised for all buyers with the exception of Singaporeans who are making their first home purchases.

In December, 45 and 66 new projects were sold in the Outside Central Region and Rest of Central Region respectively. This was higher than the 24 unit sales in the Core Central Region.

In December, data showed that The Continuum and The Landmark were the two most popular projects in RCR’s city fringes. 17 units at a median of S$2,775 psf were sold.

The Myst was the best-performing OCR project in suburban Singapore, selling nine units for a median of S$2,199 per square foot, followed by J’den with seven units sold at a S$2,577 median price.

The Chuan Park Condo

Midtown Modern, and Watten House were the best-selling CCR developments in December 2023. Each project sold six units at median prices of S$2,882 per square foot and S$3,258 per square foot, respectively.

RCR led the way in new home sales with 3,040 units (47.1%), followed by OCR with 2,953 units (30.3%) and CCR at 1,459 (22.6%).

The RCR registered a total of 11,3% more new sales in 2023 than in 2018. However, the OCR and CCR saw a decline in volume by 21% and 23%, respectively.

Around 32.4 percent of new homes sold by 2023 will be priced between S$1.5 and S$2 millions, 20.8 percent within the S$2 to S$2.5million range and 18.2 percent within the S$1 and S$1.5million price range.

Even in 2024, buyers will remain cautious due to the high interest rates and be wary of paying more than S$2.5million for a home.

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