70% drop in Q2 condo launches caused by smaller project launches and cautious buyer sentiment

SINGAPORE: The second quarter of 2024 has witnessed a significant 70% drop in new condo launches in Singapore.

This decline is primarily due to developers focusing on smaller projects, responding to a cautious mood among buyers.

According to data from Huttons Data Analytics, only 600-700 new private residential units were introduced between April and June, sharply down from 2,374 units launched during the same period last year.

Singapore Business Review reported that this reduced the number of new units and impacted sales figures, with estimates suggesting developers sold only 700 to 800 units in Q2 2024.

This reflects a 65% decline from the previous year and a 35% drop compared to the first quarter of this year.

Despite these figures, the sales volume remained consistent with the number of units launched, indicating sustained demand for new residential properties, as highlighted by Lee Sze Teck, senior director for data analytics at Huttons.

Stable prices amid cautious buyer behaviour

Despite the drop in new launches, property prices have remained steady, showing a modest increase of 1.1% in Q2. According to early estimates from the Urban Redevelopment Authority (URA), this uptick is lower than the 1.4% rise seen in Q1.

Mr Lee attributes this stability to higher interest rates and cautious buyer behaviour, which have capped price rises.

Leonard Tay, head of research at Knight Frank Singapore, explained that although prices for newly launched private homes have held firm, they reflect decisions made on land costs 12 to 18 months ago and ongoing high construction expenses.

Singaporean buyers, particularly those interested in prime locations, are becoming more selective in their property choices.

Top-selling projects by district

In Q2, Huttons identified Districts 23, 26, and 15 as the top districts for developers’ sales.

District 23 saw strong developer sales with projects like Hillhaven, The Botany at the Dairy Farm, and The Myst leading sales, accounting for over 66% of the 757 units sold.

District 26 also performed well, with Lentor Hills Residences, Hillock Green, and Lentor Mansion selling more than 75% of the 2,477 units available.

Mr Lee noted that the lack of new launches in District 26 likely created pent-up demand, potentially appealing to many buyers in Lentor.

In District 15, Grand Dunman, Tembusu Grand, and The Continuum attracted buyers with competitive pricing in newly completed developments.

Mr Lee highlighted that similar prices between these new projects and existing developments motivated buyers to choose these new projects. /TISG

Read also: Condo rental prices dip in April after brief March respite, continuing 9 month decline

Featured image by Depositphotos