New Launch Sales Report - Nov 2022

New private home sales remained tepid in November as a lack of major project launches and tight unsold inventory in the primary market weighed on sales volume.

Developers sold 259 new units (excluding Executive Condos) in November, representing a 17.3% decline from the previous month. It is also the lowest monthly new home sales figure since December 2014 where 230 units were sold then.

Developers’ sales in November were subdued amid the lack of new project launches and the thinning unsold stock of new homes on the market, especially in the OCR. Developers’ sales were particularly sluggish in the Outside Central Region (OCR) as the lack of new launches and depleted unsold stock meant fewer options for home buyers. In November, 38 new units were transacted in the OCR – down by 37% from October.

Median Transacted Unit Price (based on PSF)

Foreigners climbing in for the month of Nov

According to URA Realis caveat data, the overall proportion of foreign buyers for private new home sales rose to 19.7% in November from 11.3% in October, largely driven by deals in the CCR. In particular, foreign buyers accounted for more than a quarter of new home sales in the CCR, doubling from the proportion in October.

Market Outlook for New Launch Sales in 2023

Based on URA data, most of the existing OCR launches have sold more than 70% to 100% of their inventory, leaving buyers with limited options. Similarly, unsold stock in the RCR has also pared down following the steady sales at city fringe projects. This imbalance in supply and demand is expected to persist in December. In view of this, PropNex anticipates that upcoming launches in the Q1 2023, such as Sceneca Residence, Lentor Hills Residences, The Botany@Dairy Farm, and The Arden should garner healthy interest due to pent-up

demand.

2023 should bring more choices to would-be buyers as more launches come on. In addition, there is also a possibility of slowing interest rate hikes in 2023, which could give

homebuyers more confidence to enter the market.

Top 10 selling projects in Nov