Price-conscious buyers may be cause of slow start to private home sales

SINGAPORE: Leading real estate agency PropNex predicts a gradual start for private new home sales in 2024, attributing the slow pace to cautious and selective buyers who are keenly price-conscious, given the recent launches of The Arcady at Boon Keng and Hillhaven surpassing the 50-unit mark on their launch days.

The Arcady at Boon Keng and Hillhaven initiated the private home launches for the year, reporting sales of 51 and 56 units, respectively. PropNex has described the sales figures of these two developments as “encouraging,” and Huttons, another real estate agency, concurred, pointing out that the market had a positive start, with both developments exceeding 50 units sold on their launch day.

Amidst the optimism, PropNex acknowledges the likelihood of a slow start in 2024, considering the seasonal lull in December and a relatively subdued year for developers’ sales in 2023. The agency anticipates that the market may take some time to regain momentum and recover from the holiday season’s impact.

“While buying sentiment remains intact, prospective buyers appear to be carefully assessing the market and evaluating their options,” PropNex said. The agency predicts a gradual improvement in take-up as buyers gradually return to the market after the festive period.

The slower start is attributed to the need for buyers to gain more clarity about market conditions. PropNex suggests that the initial cautious approach could be a consequence of the weaker sales experienced by developers in the preceding year. The agency believes that as buyers become more confident and the market conditions stabilize, there will be a subsequent pick-up in momentum.

Industry experts are closely monitoring these developments, and the general consensus is that the market is poised for growth as the year progresses. The slow start may be a temporary phase, and stakeholders remain optimistic that the private new home sales sector will regain its vigour in the coming months as the buyers’ confidence returns and market dynamics become clearer.