According to the latest real estate statistics released by the Housing and Development Board (HDB), the sales of new private residential properties dropped to 203 units in October 2023, marking the lowest monthly sales for the year so far, a month-on-month decline of 6.5%. This data reflects the cautious strategy adopted by developers in launching new projects to ensure optimal sales performance and prevent buyer fatigue.
Market observers had anticipated this brief decline, as most buyers were in a wait-and-see mode last month, anticipating the launch of popular projects in November, such as the highly anticipated Hillock Green and J'den. Developers carefully schedule the launch of new projects to maximize impact and ensure optimal sales performance. This approach aims to prevent buyer fatigue and allows potential buyers ample time to assess available options.
However, this also means that developers need to constantly innovate and introduce differentiated products to attract homebuyers. In the first ten months of this year, developers launched around 7,300 new apartments, a 69.3% increase compared to the same period last year.
Meanwhile, homebuyers purchased 5,753 apartments, a 17.3% decrease compared to the same period in 2022. This may indicate that market demand is gradually saturating, requiring more innovation and differentiated products to attract homebuyers.
Apart from developer strategies, the change in sales data is also influenced by project location and pricing. According to statistics, projects in the Rest of Central Region (RCR) contributed 40.4% to the total sales by developers in October.
The best-selling projects included The Reserve Residences, selling 23 units at a median price of $2,361 per square foot, followed by Grand Dunman, selling 15 units at a median price of $2,452 per square foot.
Additionally, Lentor Hills Residences in the Outside Central Region (OCR) achieved significant sales success, with approximately 70% sold since its opening in July.
Meanwhile, sales in the Core Central Region (CCR) dropped to the lowest level in over three years last month, declining by 40.8% month-on-month, with only 45 units sold. The best-selling project in this sub-market was Klimt Cairnhill, selling 11 units at a median price of $3,509 per square foot.
The slowdown in CCR sales is mainly attributed to a reduction in unsold inventory in the market and limited new projects, as developers have essentially refrained from launching new CCR projects since the increase in Additional Buyer's Stamp Duty rates in April 2023.
