The overall stock of unsold units in the new private sector hit a record low this year, falling to just over 14,000 units in the first quarter of 2022.
The supply of units for sale picks up slightly in the second half of 2022, reaching 15,677 units by the third quarter of 2022.
Of these, OCR has only 3,417 unsold units. Meanwhile, the average annual sales of new private homes in the OCR over the past five years has been around 4,900 units, implying a current imbalance in housing supply and demand in this sub-market.
Given the limited number of new developments in 2022 and the tightening number of unsold units, many buyers are eagerly awaiting the new projects that will open this year.
Bona estimates that approximately 12,000 residential units (including EC) from over 40 projects are likely to enter the market in 2023 (see Table 1).
The Other Central Region (RCR) is expected to lead new sales activity this year, with approximately 5,200 residential units to be launched. This is followed by the OCR, with approximately 4,400 units to be launched. First-time buyers and HDB upgraders are likely to be actively looking at projects in these two sub-markets.
Meanwhile, the Core Central Region (CCR) may see some 2,500 new private homes added to the stock, which will attract foreign buyers, especially Chinese investors, as China moves away from its "dynamic clearance" policy and relaxes its anti-vaccination measures.
Typically, when residential developments open, certain flat types (from one to two and three bedroom units) tend to sell out first, as they are less expensive than larger units.
In addition, units with good orientation and desirable features in the same end-of-door number also tend to sell out at an early stage of the project's opening. This cuts down on the remaining options for potential buyers and the unsold units may be beyond their budgets as these remaining units may be larger homes.
As a result, many buyers who missed out on their preferred units in earlier openings will undoubtedly be looking for suitable flats in the new developments coming up in the first quarter of 2023.
Those who prefer OCR can explore The Botany @ Dairy Farm at Tanah Merah, the Lentor Hills Residences in Toronto's new private residential precinct and The Botany @ Bukit Timah Nature Reserve near Bukit Timah. Botany @ Dairy Farm.
King's Court will be the first to open its doors and is expected to attract strong interest from the market. Highlights of the development include the Tanah Merah Station right on the doorstep, the convenience of living with commercial services on the ground floor of the development, and its proximity to Changi Business Park and the upcoming further expansion of Changi Airport.
Meanwhile, a massive RCR project is likely to open in the first quarter of 2023. The Reserve Residence in Jalan Anak Bukit is part of a large mixed-use development that is expected to include 740 new private residential units. The project is seen as a key catalyst for the regeneration of the Beauty World area.
In the Central Core District (CCR), two redevelopments, TMW Maxwell and 8 Shenton Way, are likely to be launched this season. Both developments are conveniently located within walking distance of the MRT and many amenities.
TMW Maxwell and 8 Shenton Way may appeal to owner-occupiers who want to live in the city centre as well as property investors, both local and foreign.