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Drought will be Over Soon: Residential Property Primary Market Supply and Demand in October



Residential property primary market in October


In October 2023, residential property developers in Singapore released the second lowest number of private housing units in the first 10 months of this year. A total of 54 new private dwelling units were launched last month.


The low supply of new units was met with the least number of housing units sold in any given month so far this year. Property developers sold a total of 203 private housing units and 21 Executive Condominium (EC) units in October.


However, the number of private dwelling units sold in October is four times more than the number of units released in the same month. In addition, the developers’ sales in October were only 14 units fewer than the 217 units transacted in September. This indicates that homebuying demand is moderately week but still stable in the absence of any new residential project launch. No new private residential project or EC project was launched last month.


Number of Private Housing Units Launched (excluding Exec Condo)
Number of Private Housing Units Launched (excluding Exec Condo)

Source: Mogul.sg Research, URA


Number of Private Housing Units Sold in Primary Market (excluding Exec Condo)
Number of Private Housing Units Sold in Primary Market (excluding Exec Condo)

Source: Mogul.sg Research, URA


The drought will end this month


Two new residential projects, namely J’Den and Hillock Green, were launched this month, bringing an end to the two-month drought in the primary housing market. A total of about 454 units were sold in both projects in the first weekend of their launches which is more than the combined number of private homes sold by developers in September and October.


The launch of these two housing projects could also have a positive effect on the rest of the residential property market. Each of these developments was launched at new benchmark price for condominiums in their respective neighbourhood. The higher prices of these two launches would make the other recently launched condominium projects and properties in the resale market relatively cheaper.


Buyers who were either priced out of J’Den and Hillock Green or could not get their preferred units during the launch of these two new projects may explore buying properties in the other developments. Therefore, the developers’ sales volume in November could be three to four times more than the 203 units sold in October.


Table 1: Best-selling residential projects in October 2023

Best-selling residential projects in October 2023
Best-selling residential projects in October 2023

Source: Mogul.sg Research, URA


Outlook: Not with a bang but a whimper


The residential primary market launch and sales activities could slow down in December as many decision makers take their vacations during the year-end period. The recent tourism fairs organised by tour companies enjoyed record attendance with many local residents booking their vacations.


After factoring in the year-end lull period, property developers are projected to sell about 6,300 to 6,550 private housing units this year, which is lower than the 7,099 new housing units sold in 2022.


In addition, developers are expected to sell an estimated 740 to 770 new EC units this year, which is only about half of the 1,479 new EC units sold last year.


This year started with great hopes among property players that the primary property market sales could exceed the sales volume of 2022 due to the large number of residential projects slated to be launched. However, based on the available information, the private housing market in 2023 could end not with a bang but a whimper as the property cooling measures, heightened economic and geopolitical uncertainties take its toll.

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