In a surprising turn of events, developers in Singapore sold only 301 new private homes in April 2024, marking a significant 58.1% drop from the 718 units sold in March. This decline, revealed by official data on May 15, underscores the impact of fewer new launches and shifting market dynamics on home sales.
Key Highlights:
- Sales Volume: 301 new homes sold in April, down 58.1% from March.
- Year-on-Year Comparison: 66.2% decrease from 890 units sold in April 2023.
- Total for 2024 So Far: 1,465 units sold, down 31.7% from 2,146 units in the same period of 2023.
- Launches: Only 278 private homes launched in April, significantly fewer than March’s 877 units.
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Top-Selling Projects:
- The Botany at Dairy Farm: 50 units at a median price of S$2,003 psf.
- The Hill @ One-North: 42 units at S$2,614 psf.
- Economic Sentiment: High interest rates and economic uncertainty dampen buyer enthusiasm.
- Price Sensitivity: Buyers gravitate towards competitively priced existing launches.
- Executive Condominiums (ECs): Sales of 51 units, led by North Gaia EC with 33 units sold at S$1,315 psf.
Market Interpretation:
The substantial drop in new home sales in April reflects a cautious market sentiment amid economic uncertainty and fewer new project launches. Several factors contribute to this scenario:
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Fewer Launches: The limited number of new units introduced in April played a pivotal role in the reduced sales volume. Only three new projects were launched, contrasting sharply with the robust activity in previous months.
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High Base Effect: March saw a surge in sales, particularly at Lentor Mansion, setting a high comparative base that April struggled to match.
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Economic Caution: High interest rates and an uncertain economic climate have made homebuyers more selective and price-sensitive. The urgency and fear-of-missing-out that characterized the market from late 2020 to mid-2022 have subsided.
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Regional Trends: Sales were strongest in suburban and city-fringe areas, indicating that buyers are seeking value-for-money propositions in more affordable regions.
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Foreign Interest: Despite a generally cautious market, foreign buying remained steady, driven by geopolitical tensions and the relative stability of Singapore’s property market.
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Luxury Market Activity: The high-end segment saw increased activity with significant transactions at newly launched luxury projects like 32 Gilstead.
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