New home sales to rebound in November after lacklustre October: experts
Transactions fell 6.5% MoM in October, marking the third consecutive month of decline.
After three consecutive months of decline, real estate experts are positive that new home sales will rebound in November.
J’den and Hillock Green will lead in the expected surge in November, said SRI.
“It is expected that new home sales for November will outperform the month of October, with J’den and Hillock Green leading the way. New home sales in November are poised to surpass the figures observed in October,” SRI commented.
“These developments have captured the attention of prospective home buyers due to their unique offerings and strategic locations. This positive shift in sentiment can be attributed to the availability of appealing options, as more new launches hit the market. As these options become more diverse, it encourages those on the sidelines to take a more proactive stance in considering the opportunities presented by the evolving new launch landscape.
According to PropNex, J’den booked 88% of its total 368 units at an average price of $2,451 psf, whilst Hillock Green sold more than 27% of its 474 units at an average price of $2,108 psf, which is “an encouraging performance in the Lentor area which has ample upcoming housing supply.”
“Going by buyers’ response and recent government land sales tenders, it seems that the residential property market is still relatively resilient and market confidence remains intact even though sales have been muted in the past months. In addition, the tepid primary market sales could be partly due to the paring down of unsold stock and a limited number of smaller units available,” PropNex added.
Given the strong sales of J'den, OrangeTee revised its projection for total new home sales in 2023 to between 6,600 to 7,100.
Commenting on the subdued home sales in October, PropNex said the decline was likely due to the absence of major new property launches during the month.
“Developers have likely opted for a strategic approach, carefully spacing out their new project launches to maximise the impact and ensure optimal sales performance. To provide context, the third quarter of 2023 saw 2,805 units launched, an increase of 18.2% (QoQ) up from 2,374 units released in 2Q23,” said PropNex
“Developers likely aimed to garner the highest level of interest and demand from prospective home buyers and investors. By spacing out their new launches, it allows developers to create a sense of anticipation and buzz around their project launches, capturing the attention of potential buyers who might have been waiting for the right opportunity. This approach is driven by the need to prevent buyer fatigue, allowing potential buyers to have ample time to evaluate the available options and make informed decisions.” PropNex added.