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August 2024 saw a significant cooling in Singapore’s new private home sales, with transactions dropping to 208 units, marking a 64% decrease from July’s 571 units. This decline, while substantial, aligns with historical trends and market expectations.
The slowdown coincides with the Chinese Hungry Ghost Festival, which is traditionally associated with reduced property transactions in Singapore. The absence of major new launches also contributed to the muted sales figures. However, a closer examination reveals a market that, despite the apparent lull, continues to show signs of underlying strength and selectivity.
Luxury Segment
While overall sales volumes contracted, the high-end market demonstrated remarkable resilience. In August 2024, the Core Central Region (CCR), home to Singapore’s most prestigious addresses, saw 20 new units transacted.
A standout transaction at 32 Gilstead caught the attention of market analysts. A 4,198-square-foot freehold property was acquired for $14.7 million, translating to $3,505 per square foot. This sale set a new benchmark for the development and highlighted the appeal of premium properties to a specific niche of buyers.
Other CCR projects, including One Bernam, 19 Nassim, and Watten House, continued to attract interest, each selling 5-6 units in August. These steady sales in the luxury segment highlight Singapore’s persistent draw as a safe haven for wealth, even amid global economic uncertainties.
Suburban Strength
Interestingly, the Outside Central Region (OCR) dominated August’s sales, accounting for 59% of the month’s transactions. Projects such as Hillock Green, Lentoria, and Hillhaven found favour with buyers, each moving 14-17 units.
This preference for OCR properties may signal an evolving trend in buyer priorities. As remote work becomes more entrenched, homebuyers increasingly look beyond traditional prime areas, seeking larger spaces and comprehensive amenities that support a balanced lifestyle.
RCR Holds Its Ground
The Rest of Central Region (RCR) also had moments in the spotlight. Tembusu Grand emerged as August’s top performer, selling 30 units at a median price of $2,455 per square foot. Its strong showing, bringing its total take-up rate to 74% since its April 2023 launch, demonstrates the potential for well-conceived projects to thrive even in quieter market periods.
Market Dynamics Beyond the Surface
While lower than previous months, August’s sales figures need to be contextualised. The absence of new launches played a significant role in tempering transaction volumes. Developers, attuned to market rhythms, strategically held back new releases during the traditionally slower Hungry Ghost, or Seventh, Month period.
This pause sets the stage for what could be an eventful final quarter. Industry observers closely monitor upcoming launches, including the 158-unit 8@BT near Beauty World MRT and the highly anticipated Emerald of Katong in the east.
Moreover, the market showed signs of price resilience. The median transacted price for new non-landed private homes rose 4.2% to $2,238 per square foot in August, up from July’s $2,147. This uptick, amidst lower sales volumes, suggests that quality properties continue to command premium prices.
In a global landscape marked by economic uncertainties, Singapore’s property market continues to benefit from the country’s reputation as a stable, well-governed hub. While still modest, the proportion of new private homes purchased by foreigners edged up to 2.4% in August from 0.9% in July. This slight increase hints at Singapore’s growing attractiveness to international investors seeking safe harbours for their capital.
Looking Ahead
As we move into the final months 2024, several factors could inject fresh energy into the new private home sales scene. The anticipated US Federal Reserve policy rate cut in late September will likely ease borrowing costs and reignite interest among sidelined buyers.
Additionally, a slew of new launches is on the horizon. Projects like Meyer Blue, Union Square Residences, and the mixed-use development on the Marina View white site are poised to enter the market, offering fresh options for buyers waiting on the sidelines.
While August’s sales figures might appear subdued at first glance, they belie an underlying resilience in Singapore’s private housing market. The steady performance of luxury properties, the continued appeal of well-located developments, and the potential for more favourable lending conditions all point to a market poised for measured growth.
As we approach the final quarter of 2024, all eyes will be on how these factors converge to shape the next chapter in Singapore’s dynamic property market narrative.
If you’re in the market for a new private home, reach out to our top 1% luxury real estate team at Singapore Luxury Homes.
