{"id":69936,"date":"2023-10-17T17:33:55","date_gmt":"2023-10-17T09:33:55","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=69936"},"modified":"2023-10-17T17:33:55","modified_gmt":"2023-10-17T09:33:55","slug":"september-lowest-private-home-sales","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/september-lowest-private-home-sales\/","title":{"rendered":"September records lowest private home sales since 2022 (insights, price trends & projections for the year)"},"content":{"rendered":"
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In a recent report released by the Urban Redevelopment Authority (URA)<\/a>, it was revealed that Singapore’s real estate market witnessed a significant slowdown in September. This month marked the lowest private home sales since December 2022. <\/span><\/p>\r\n\r\n\r\n\r\n

This article dives into the reasons behind this decline, explores the demand for Executive Condominiums (ECs)<\/a>, and provides insights into upcoming launches and sales projections for the remainder of the year.<\/span><\/p>\r\n\r\n\r\n\r\n

\"September<\/a><\/figure>\r\n\r\n\r\n\r\n

September sees lowest private home sales<\/strong><\/h2>\r\n\r\n\r\n\r\n

In September, a mere 217 units were sold, marking a substantial 44.9% drop from August and an astonishing 78% drop from the same month last year.<\/a>\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

This decline brought the total primary home sales for the first nine months of 2023 to 5,407 units \u2013 a 15.6% decrease compared to the same period in the previous year.\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

Notably, this nine-month tally represents the lowest figures since 2016, highlighting the severity of the current market situation.<\/span><\/p>\r\n\r\n\r\n\r\n

Read also:<\/strong>\u00a0\u201cPrice pressures expected till end 2023\u201d: HDB resale prices drop for the first time since February<\/a><\/p>\r\n\r\n\r\n\r\n

Reasons behind the sales decline<\/strong><\/h2>\r\n\r\n\r\n\r\n

The decline in Singapore’s real estate market in September was influenced by a combination of factors that created a challenging environment for property sales:<\/span><\/p>\r\n\r\n\r\n\r\n

\"Lack<\/a>Absence of major property launches<\/strong><\/h3>\r\n\r\n\r\n\r\n

One significant factor was the lack of major property launches in the preceding two months. New launches often infuse the market with excitement, drawing in potential buyers eager to explore fresh opportunities. <\/span><\/p>\r\n\r\n\r\n\r\n

The absence of such launches created a void, reducing the overall allure of the market.<\/span><\/p>\r\n\r\n\r\n\r\n

Cultural observances and school holidays<\/strong><\/h3>\r\n\r\n\r\n\r\n

Furthermore, the timing of the lunar seventh month, also known as the Hungry Ghost festival, and the occurrence of school holidays further dampened market activities. Traditionally, during the lunar seventh month, many individuals observe cultural practices that might deter them from engaging in significant financial transactions, including property purchases.\u00a0<\/span><\/p>\r\n

Similarly, school holidays tend to divert the attention of families, making them less inclined to invest in property during this period.<\/span>\"cautious<\/a><\/p>\r\n

Cautious buyer sentiment<\/strong><\/h3>\r\n\r\n\r\n\r\n\r\n\r\n

Additionally, analysts observed that buyer sentiment was cautious and guarded. The prevalent weak economic conditions, combined with ongoing market cooling measures<\/a>, created an atmosphere of uncertainty among potential buyers. <\/span><\/p>\r\n\r\n\r\n\r\n

The government’s measures to stabilise the property market, while necessary for long-term sustainability, had a short-term impact on buyer confidence. The uncertainty was further compounded by elevated interest rates, which made financing less attractive for potential buyers.<\/span><\/p>\r\n\r\n\r\n\r\n

Read also:<\/strong>\u00a0The realities of luxury property investment & why high-end homes don\u2019t always equal high returns<\/a>\"developer's<\/a><\/p>\r\n\r\n\r\n\r\n

Developer\u2019s dilemma<\/strong><\/h3>\r\n\r\n\r\n\r\n

On the developer’s side, there was a delicate balancing act. <\/span><\/p>\r\n\r\n\r\n\r\n

While they were acutely aware of the subdued market sentiment, they refrained from implementing significant price cuts. This cautious approach was influenced by earlier capital outlays made by developers. These financial investments, made in the initial stages of property development, meant that drastic price reductions could severely impact their profit margins. <\/span><\/p>\r\n\r\n\r\n\r\n

Consequently, developers chose to maintain stable pricing, waiting for a more opportune moment in the market to make strategic adjustments.<\/span><\/p>\r\n\r\n\r\n\r\n

\"Artist<\/a>\r\n
Artist’s impression of Altura<\/figcaption>\r\n<\/figure>\r\n\r\n\r\n\r\n

Demand for Executive Condominiums (ECs)<\/strong><\/h2>\r\n\r\n\r\n\r\n

Despite the overall market slowdown, the demand for Executive Condominiums (ECs) remained robust.\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

Altura<\/a>, situated in Bukit Batok, emerged as the best-selling project in this category. With a median price of S$1,473 per square foot (psf) in September, Altura set a new benchmark for the EC market.\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

Notably, a 980 square foot unit within Altura was also sold for an impressive S$1.6 million, equating to an astounding S$1,585 psf. This achievement eclipsed the previous per square foot price high held by Copen Grand<\/a>, which stood at S$1,499 psf.<\/p>\r\n\r\n\r\n\r\n

The strong demand for ECs can be attributed to price-sensitive buyers seeking an alternative to private homes.<\/span><\/p>\r\n\r\n\r\n\r\n

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Read reviews for both Altura and Coper Grand here:<\/strong>
Bukit Batok’s first EC in 20 years and within 1km of ACS (Primary) Tengah<\/a>
First Tengah EC With Efficient Layouts & Luxurious Facilities<\/a><\/p>\r\n<\/div>\r\n\r\n\r\n

Properties for you<\/h4>\n
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