Is the residential sales momentum in Singapore running out of steam? | Real Estate Asia
, Singapore
117 view s

Is the residential sales momentum in Singapore running out of steam?

New private home sales from January to August 2024 nearly halved YoY.

 

Investment sales in Singapore’s residential segment declined by 22.0% QoQ from S$4.04 billion in Q2/2024 to S$3.15 billion in Q3/2024, according to data from Savills. 

 

“In August, five GLS residential sites were awarded for a total of S$2.34 billion. Among these, four private condominium plots received only two to three bids each, with the winning bids generally falling below market expectations,” the analyst said.

 

Here’s more from Savills:

 

In contrast, the top bid submitted by the Qingjian-led consortium for the executive condominium (EC) site at Jalan Loyang Besar translated to a land rate of S$729 psf per plot ratio, setting a new record for EC land prices in Singapore. 

 

From January to August 2024, a total of 2,668 new private homes (excluding ECs) were sold, representing a 48.6% YoY drop from the 5,190 units sold during the same period in 2023. Furthermore, the unsold inventory of private residential units with planning approval rose significantly by 17.6% YoY to 20,566 as of the end of Q2/2024, compared to 17,484 units a year ago. 

 

The lacklustre performance in new sales in recent months, coupled with the growing unsold stock, has casted a shadow over whether the sales momentum is running out of steam. As a result, developers’ interest in GLS private residential sites remained lukewarm. 

 

The sales volume for luxury homes priced at S$10 million and above fell significantly in Q3/2024, with 36 units transacted in the quarter, down from 51 units in Q2/2024. Nevertheless, the GCB market had been active in the quarter, with nine deals recorded. This is the highest quarterly transaction volume since Q4/2021. The most expensive GCB sold in the quarter was a freehold bungalow in Tanglin Hill for approximately S$93.9 million. Its price of S$6,197 psf based on a land area of 15,150 sq ft also set a record land rate for a GCB. 

 

Another sizable deal involved two adjoining freehold bungalows on Belmont Road situated within the Belmont Park GCB Area, which changed hands for a total of S$131.4 million. This amount included S$57.7 million for the bungalow with the smaller plot and S$73.7 million for the larger one, averaging about S$3,000 psf on land area for both properties. In addition, a freehold two-storey bungalow in Cluny Hill was sold for S$52.0 million, translating to a S$3,434 psf on land area.

Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!