Huttons’ comments on Dec 2022 developer’s sales
December 2022 sets the record for the slowest month ever. Developers sold 170 units in December, 34.6% lower month-on-month and 73.8% lower year-on-year.
Developers launched only a paltry 45 units for sale in December. This is the lowest number of units launched for sale since URA started reporting the data in June 2007. This is a reflection of the low number of units available for sale.
You may like : Sceneca Residences , Tanah Merah Mixed Development Condo for Sale in 2023
The Core Central Region (CCR) continued to rake up healthy sales in December. 89 units were sold in the CCR in December, making up 52.4% of total transaction volume. This is the third month that sales in the CCR accounted for more than half of the monthly sales.
Know More : Mega Development Launch in 2023 – Grand Dunman
You may also like : Lentor Hill Residences ; 2nd Development in Lentor
A 2,368 sq ft unit at level 35 of Klimt Cairnhill was bought by a foreigner for $10.098 million in December. This was also the highest value transacted in December.
Foreigners accounted for an estimated 7.2% of sales in 2022, much higher than 2021’s 4.3% as relaxed border controls allowed more to visit Singapore.
Watch out for this Launch – One and Only of its Kind ; Reserve Residences
Proportion of Purchase by Foreigners
Read About : Overseas Opportunity ; Quayside JBCC
With sustained interest in the CCR, the proportion of sales $2 million and above made up 64.3% in December.
Purchases by Residential Status and Price Range in December
Read Also Across and Above The Terrain at Terra Hill
Top 5 Projects by Sales in December
Take a look at – The Botany @ Dairy Farm, Most Affordable Condo in 2023
The first launch of the year, Sceneca Residence saw firm demand from buyers, selling 60% of its units at an average of $2,072 psf. This strong result should dispel doubts about the strength of the market and set the tone for the upcoming launches in Feb and Mar 2023.
Gems Ville, The Botany at Dairy Farm and Terra Hill are likely to open their showflats during the CNY period. There has not been much supply of homes in the vicinity of Gems Ville, The Botany at Dairy Farm and Terra Hill. Zyanya is the last launch near to Gems Ville and is more than 60% sold. Dairy Farm Residences which is next to The Botany at Dairy Farm is fully sold. The last project in the vicinity of Terra Hill – Kent Ridge Hill Residences is also fully sold. The Botany at Dairy Farm and Terra Hill should see good response as well.
Projects that may also be launched in 1Q 2023 include 8 Shenton Way, Blossoms by the Park, Tembusu Grand, Lentor Hill Residences, Marina View, Newport Residences, Terra Hill, The Continuum, The Hill@One-North and The Reserve Residences.
While China has relaxed border controls, the probability of seeing a surge in buying of homes in Singapore is not high. Based on past trends, it may take up to 2 years after a cooling measure before purchases by Chinese foreigners return to norm. Buying sentiments are expected to remain cautious. Economic uncertainties and the prohibitive 30% ABSD will likely cap demand from foreigners.
New sales may be between 9,000 and 10,000 units in 2023 on the back of more launches. Land prices have been stable which means the market is less likely to see benchmark prices. Higher construction costs and low unsold supply in the market may add upward pressure by up to 5% in 2023.
