The majority of consultants anticipate that new house sales will complete the year at around 7,250 to 7,500 units – Lentor Hills Residences at Lentor Hills Road (Parcel A) By GuocoLand, Hong Leong and Mitsui Fudosan (Hot Launch 2022)

Over 5,000 people attend the Tenet EC weekend preview

For the 11 first months in 2022 there was 6,981 brand new homes sold, according to URA information as of December 15. Many experts are forecasting that new home sales will close this year with a 7250-7,000 units. “It’s in the lower part of our estimate of 7,500-8,000 units sold in 2022.” declares Ismail Gafoor who is the PropNex’s CEO. PropNex.

Comparatively to the 13,027 new homes that were sold in 2021, this represents 43% up to 44% year-over-year decrease in the volume of private home sales.

The number of launches that will be launched in 2022 was 17 private residential projects as well as three executive condominiums (ECs). The number of private residential units (excluding ECs) launched totalled between 4500 to 5,000 unitsthis is the lowest figure since June 2007, when URA started publishing developers sales statistics for their monthly reports as per Lee Sze Teck, senior director of research at Huttons Asia. The figure is also 53% less than the 10,496 units that were launched in 25 new developments in 2021. Lee adds.

Despite the small number of new projects that were launched during 2022 “buyers enjoyed the advantage of choosing units from inventory that was not sold and which was carried across from 2021” Gafoor says. Gafoor. “Most unsold inventory came from earlier projects that were priced lower than the 2022 launches.” For example Normanton Park, which had 1,862 units Normanton Park was sold out by July 2022, at an average price of $1,865 per square footwhich is less expensive than the median of over $2,100 per square foot which recent Outside Central Region (OCR) projects launched this year, for instance Amo Residences, Sky Eden@Bedok and Lentor Modern.

Stock that is not sold is expected to range between 15,500 and 16,500 by 2022. “It is well below the average for 10 years of 27,000 units that are not sold which is putting upward pressure on prices” Lee adds. Huttons’ Lee.

In the end, Huttons is projecting private property prices to increase by 10% throughout the year 2022, which is similar to 2021’s 10.6% y-o-y surge in 2021.

PropNex predicts that overall the private property market will experience an increase of 9% to 10% increase in 2022. Then, it will see a moderate 5-6% increase in 2023. JLL’s forecasts are lower , with an 8%-9% growth in 2022, and a rise of 2%-4% for 2023. The ERA forecast is for a 10%-12% price increase in 2022. Then, the more moderate 5-6% for 2023.

Prepared to take off
With the year coming to an end, developers are fine-tuning their new projects that are scheduled to be launched in 2023. The majority of consultants and agents are placing their bets that Sceneca Residence being the sole project that will be launched in the days before Chinese New Year.

Sceneca Residence is a 268-unit development. Sceneca Residence is located on the top of a 21,528 square foot retail podium, which includes 19 retail units. The entire development will be connected to the Tanah Merah MRT Station on the East-West Line. The project was jointly developed through Chinese developer MCC Land, Malaysian developer Ekovest Development and Singapore-listed Chinese investment company The Place Holdings in a 51:29:20 split.

El Development’s 275-unit Blossoms at the Park located at Slims Barracks Rise in one-north Sim Lian’s 368 unit Botany At Dairy Farm Botany at Dairy Farm, are likely to be the next to arrive on the runway ready to departure following Chinese new year. Year.

Botany At Dairy Farm Botany At Dairy Farm is close to the Dairy Farm Residences, which comprises 460 units. Dairy Farm Residences built by developer United Engineers. The project was launched in November of 2019. the development was sold out in January 2022.

Similar to that, Blossoms by the Park follows the opening of One-North Eden through TID (a joint venture that is owned by Hong Leong Holdings and Mitsui Fudosan) in which all 165 units of the project were completely completed within 11 months from the time of opening in April 2021.

“Projects that have attractive geographical and product characteristics will gain the approval of home buyers,” says Chia Siew Chuin, Singapore head of residential research at JLL.

She cites projects that are currently in development, including The 271-unit Terra Hill (the previously Flynn Park condominium) located at Yew Siang Road by Hoi Hup Realty and Sunway Development; the 740-unit The Reserve Residences located at The Jalan The Reserve Residences integrated development developed by Far East Organization and Sino Group and Sino Group; and the new development of 520 units on the Pine Grove Parcel A Government Land Sale (GLS) site jointly-venture with partners UOL Group and Singapore Land Group.

Forty new projects totalling estimates of 10,000-12,000 units are planned to launch in 2023, according to Huttons’ Lee. Based on the number of units included in the projects 20% are located in the Core Central Region (CCR) 50% are in the Core Central Region (CCR)% within the Rest of Central Region (RCR) and 30% in the OCR.

Three major projects of immense size in District 15’s prime area.
More than 40 new developments are planned to be launched from 2023 onwards “one out of 4 is an exclusive development that has less then 200 apartments” Gafoor says. “Based on our experiences as well as our observations, we have observed that sales in smaller developments don’t move more quickly than larger developments, that have many condominium options that appeal for families.”

The unsold inventory carried over between 2022 and 2023 is expected to be at a low level, says Gafoor. “Those who are looking to purchase a house in 2023 will need to select between units from the older launches and those carried over which will have 2023’s updated benchmark prices.”

PropNex anticipates mid-sized and large-scale developments in RCR or OCR to be well-received by homeowners due to the decreasing number of un-sold units in these areas, especially those in OCR or suburban regions. “We expect that the majority of these projects will be able to attain an average of 50% occupancy rate once they go live,” says Gafoor.

People who are looking to invest in the city-fringe zone that is located on the East Coast in prime District 15 will have three major projects to select between in 2023. There’s the Continuum which is an 807-unit freehold condominium at Thiam Siew Avenue developed by frequent joint venture with partners Hoi Hup Realty and Sunway Developments. There is also The 638-unit Tembusu Grand situated on in the Jalan Tembusu GLS site, situated next to Canadian International School (Tanjong Katong Campus) through an alliance between City Developments Ltd (CDL) and MCL Land. The largest is SingHaiyi’s 1,008-unit development situated on the GLS site located at Dunman Road, which is close to the park connector as well as the Geylang River, and is just a short walk from and the Dakota MRT Station.

“Some intriguing RCR projects currently in the pipeline are Dunman Road, Jalan Tembusu and Pine Grove GLS sites, that were offered at rates of more than $1,300 per plot ratio” Gafoor of PropNex.

Lentor Hills estate, Jurong Lake District
Within the Lentor Hills area, Hong Leong Holdings and GuocoLand are in the process of preparing Lentor Hills Residences to launch around 1Q2023. The development comes off the back of the popularity of GuocoLand’s 605 unit Lentor Modern mixed-use development integrated with the Lentor MRT Station. More than 85% of the units in Lentor Modern, which were launched on September 20, 2022 are filled with.

Five98 units of Lentor Hills Residences located in Lentor Hills is situated within a 300m distance from the Lentor MRT Station through an enclosed walkway. It is located just 1.2km from CHIJ St Nicholas Girls’ School, among the top desired Schools in Singapore.

“We believe that Lentor Hills Residences to be well-received by buyers of homes,” says Nicholas Mak director of the research and consulting department, ERA Singapore. “It could appeal to those who are upgrading from the north region, as well as residents of Yio Chu Kang. Yio Chu Kang landed housing estate who might be looking to buy as a way to invest or to be used by the next generation.”

Another development that is expected to draw interest could be Wing Tai Holdings’ upcoming Lake Garden Residences. The leasehold for 306 units, 99 years development is a revamp of the old Lakeside Apartments, which Wing Tai bought in a single transaction at $273.9 millions in the month of May of last year.

The last condo that was privately owned within Jurong West Jurong West neighbourhood was more than six years ago, back in July of 2016. The 710 unit 99-year leasehold condominium, Lake Grande by MCL Land. The development is sold out and is scheduled to be completed in the year 2019.

The spotlight is back on Jurong Lake District, with the government launching the 6.8ha white site in the 1H2023 GLS program. The site is situated near Jurong East MRT Interchange Station. Jurong East MRT Interchange Station and will be made available as a tender offer to an owner developer.

Seletar Hills, CBD and Upper Bukit Timah
If you’re looking to own a land-based property and within the neighborhood that is part of the Seletar Hills Estate The upcoming Pollen Collection by Bukit Sembawang Estates. The 132-unit land-based housing project is located on the end of the Mimosa Landed housing estate in the Seletar Hills Estate. Pollen Collection is scheduled for the launch in 1H2023.

This follows on from the success of the launch of Bukit Sembawang’s last stage of Luxus Hills, located off Ang Mo Kio Avenue 5. It was launched in February of 2020, and all 39 homes were sold during a weekend. At the adjacent Belgravia Drive the number of houses sold was 77 of from 85 strata landed homes in Belgravia Ace went on sale the very first day of its launch in January of this year. The Belgravia Ace, which is 107 units Belgravia Ace includes 104 semi-detached homes and three terraced houses, was created in partnership with the Teo family-owned Tong Eng Group and the family that owns the famous Yeap Holdings.

In the neighborhood located in Bukit Panjang, located just across Upper Bukit Timah Road, is a development planned by CDL. The 408-unit condo is scheduled to open around the second quarter of 2023. CDL is well-versed in the area, having constructed the neighboring 596-unit, 999 year leasehold Cashew Heights 32 years ago. 22 years ago, CDL’s parent firm, Hong Leong Holdings, developed the 696-unit leasehold Hazel Park Condo which is located near the development that is scheduled to begin at Upper Bukit Timah Road.

Within the CCR The CBD region will witness two mixed-use developments that will soon include homes at CDL’s two-46-unit Newport Residences on the site of the former Fuji Xerox Towers on Anson Road and IOI Properties’ 685-unit condo located at Marina View. Scheduled for release in the coming months is the revamp of the old AXA Tower located at 8. Shenton Way. With a height of 305m the 63-storey tower will be the tallest building in Singapore and will be a mixed-use project with luxurious residences.

Be wary of projections
Despite the more extensive list of new developments scheduled to the coming year, Gafoor’s prediction is for sales of new homes in 2023 to be around 8,000-9,000 units.

The ERA’s Mak estimates about 7,500-8,500 new private homes that will be sold by 2023, and JLL’s Chia is more cautious with an estimate of 7,700 to 8,000 new house sales for the year ahead.

“We believe that market slowdown and macroeconomic uncertainty to continue to impact the market through 2023.” Chia says. Chia. “Nonetheless there is confidence in the long-term potential capital appreciation of Singapore properties as well as the health of household liquidity as well as low unemployment and aspirations to homeownership will continue to drive homebuying demand.”

She says that demand driven by supply from major projects that are being launched and “needs-motivated purchase of homes like those upgrading from a previous property or who are right-sizing their home to a smaller house” Demand will help the market.

ERA’s Mak believes that the new prices for launch “stabilise and increase at a sustainable pace” in 2023, as homeowners adjust their expectations. “In the wake of increasing interest rates as well as the current chilling measures, some potential buyers might be hesitant to make a decision to purchase the property,” he says. “Also the recent mass layoffs within the tech industry as well as the prospect of economic uncertainty could lead to an increase in demand for homes.”

In the coming year, the prices of new launches under the OCR are predicted to remain “similar to 2022’s” According to PropNex’s Gafoor. He also predicts that benchmark prices being set within the RCR.