The sales data for April indicates a sluggish market, but also provides more time and choice opportunities for homebuyers. However, developers and the government need to closely monitor market dynamics to address potential challenges and inject vitality and confidence into the market.
According to data released by the URA on May 15, the number of new private residential units sold by developers plummeted by 58.1% month-on-month in April, dropping from 718 units in March to 301 units. This figure also marks a 66.1% decline compared to the same period last year. This outcome reveals the challenges facing the new private residential market under the current circumstances.
The primary reason for this sales decline is the lack of significant new project launches in April. Only three new projects were launched last month, namely 32 Gilstead with 13 units, The Hill @ one-north with 142 units, and The Hillshore with 59 units. Compared to previous larger projects, these launches failed to provide enough unit choices for potential buyers, resulting in the decline in sales volume.
The latest data shows that the number of apartments newly launched in April was 278 units, a decrease of 68.3% from 877 units in March. This once again underscores buyers' caution and desire for projects that can meet their needs.
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Despite the overall sluggish sales performance, the sales rates of the three new products launched in April are encouraging. For example, 14 units in the 32 Gilstead project were sold at a median price of $3,443 per square foot, while 42 units in The Hill @ One-North were sold at a median price of $2,614 per square foot. This indicates a demand for high-quality housing within a limited selection range.
Furthermore, the best-selling project was The Botany at Dairy Farm, which sold 50 out of 386 units at a median price of $2,004 per square foot. The project has sold 87% of its units so far.
However, the poor sales data reflects buyers' increasingly picky attitudes. Unlike the past market urgency, today's buyers are more willing to spend time searching for ideal properties that fit their lifestyles.
In this situation, some buyers have turned to the resale market for alternative options. Since 2023, the number of resale transactions has been steadily increasing, indicating a rising demand for existing properties that are immediately available for occupancy.
Additionally, while there will be no significant new project launches in the next two months, the market expects sales in May to remain soft, with an estimated 150 to 250 units sold. Two boutique development projects will be launched next month, but their impact on the overall market may be limited.
Nevertheless, it is expected that suburban new project launches in the coming months will dominate the market. These projects are typically located in the Rest of Central Region (RCR) and Outside Central Region (OCR) areas, and are able to meet buyers' demand for comfortable living environments.
