Singapore new residential sales surge by 60% QoQ to 1,160 units in Q3

But sales are still 40% lower YoY.

In line with the surge in the number of launched units, providing a wider variety of options to homebuyers, Singapore’s new sales expanded 60.0% QoQ to 1,160 units in Q3/2024, according to data from Savills. However, on a YoY basis, it was still 40.4% lower.

“As there were more units launched in RCR and OCR, new sales in these two market segments grew by 70.0% and 72.7% on a QoQ basis to 391 and 715 units respectively. For OCR, this was the second consecutive quarter that new sales have surpassed launches,” the analyst said.

Here’s more from Savills:

Separately, 54 units were sold in the primary market in CCR. For CCR, this was the sixth consecutive quarter of decline. Despite the contraction, new sales still exceeded launches in the market segment. Consequently, new sales in CCR only constituted 4.7% of total new sales in the quarter, while that in RCR and OCR comprised 33.7% and 61.6% respectively.

Owing to the lack of significant new launches and hike in the Additional Buyer’s Stamp Duty (ABSD) rates for foreigners, sales in the CCR have been severely impacted, with new sales continuing to fall. As demand for homes in CCR is largely driven by foreigners, who have now taken a backseat, things have appeared to be looking better for RCR and OCR, whereby the target market is largely Singapore residents. With more new launches and interest rates starting to decline, sentiments from homebuyers may have turned positive, which have led to an improvement in new sales.

Of the top five best-selling projects in Q3/2024, two of the new launches in the quarter took the top two positions, with Kassia and Sora selling over 100 units each. The other three projects were previously launched developments, which sold over 80 units each. These included Hillhaven (launched in Q1/2024 and 87 units sold in the quarter), Pinetree Hill (launched in Q3/2023 and 87 units sold in the quarter) and Tembusu Grand (launched in Q2/2023 and 85 units sold in the quarter).

While new sales rebounded following an increase in launches, secondary sales continued on the rise, albeit at a much moderated pace as compared to the previous quarter. In comparison to the 36.7% surge in Q2/2024, secondary sales inched up marginally by 0.5% QoQ to 4,212 units in Q3/2024. This was the second consecutive quarter of increase and the highest secondary sales volume since Q2/2022 when it amounted to 4,414 units.

Across the three market segments, secondary sales in RCR and OCR grew for the second consecutive quarter by 0.8% and 3.4% QoQ to 1,249 units and 2,293 units respectively. On the other hand, secondary sales in CCR declined 8.7% QoQ to 670 units in the quarter, after a quarterly increase in the previous quarter. Nevertheless, the secondary sales in CCR were still 25.2% higher YoY.

Total non-landed residential sales volume grew for a second consecutive quarter, with sales to locals increasing. After showing growth in Q2/2023, non-landed sales volume by Singapore permanent residents (PRs) and foreigners fell 5.7% and 22.2% QoQ to 791 units and 63 units respectively in Q3/2024 respectively. As such, this is further reinforcing the view that the higher ABSD rates are deterring foreigners and PRs from acquiring residential properties. This is especially seen in the case of foreigners with foreign home purchases plunging to below 100 units per quarter since Q3/2023.

Non-landed home purchases of Singaporeans, on the other hand, grew steadily for the third consecutive quarter by 8.9% QoQ to 3,749 units in the quarter, the highest since Q3/2023 when sales volume by locals amounted to 3,932 units. Falling mortgage rates may have improved buyers’ confidence to enter the private residential market, especially for many that have been sitting on the sidelines amid the high-interest rate environment.

Owing to the increase in non-landed home purchases of Singaporeans, the proportion of non-landed sales by this group of buyers grew 2.5 ppts from 78.8% in Q2/2024 to 81.3% in Q3/2024. Consequently, the proportion of non-landed sales by PRs and foreigners declined by 2.0 ppts and 0.5 of a ppt to 17.2% and 1.4% in the quarter. For foreigners, this was the fifth consecutive quarter that proportion of home purchases by foreigners has fallen to below 2% since the higher ABSD rates were imposed.