New home sales in prime areas remained high despite slowing demand by 2023
Private homes in prime districts have been snapped faster than those at the city edge and suburbs by 2023. This is partly due to a shortage of new private residential launches.
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The Urban Redevelopment Authority (URA), according to its data, has reported that from January to September 20, 2023, 505 private homes have been launched in central region core (CCR), while 1,182 were sold. In addition to the homes already sold, new homes are being built from existing projects.
In contrast, in the city fringe there were 4,183 newly launched units. Developers in the suburbs sold 1,230 new units and launched 1,803 brand-new homes.
Overall, sales are expected to be the lowest since 2008. In 2008, 4,264 new homes were sold.
Analysts blamed factors such as the high interest rate and an additional round of property cooling measure in April.
The Myst Pricing
According to URA, median prices of private homes in the Prime District rose 18.9%, from $2.496 per sq. ft. (psf), from 2020 until the first 11 months 2023.
Median prices of new suburban homes grew from $1.548 psf a year ago to $2.113 per sq ft.
The Cairnhill Residences include Skywaters Residences. Newport Residences. 21, Anderson, and One Leonie Residences.
As a result of property curbs as well as buyers being cautious due to cost concerns, the market is expected remain stable.
The housing market will be impacted by geopolitical conflicts, macroeconomic headwinds rising costs, and high interest rates, at least during the first half year of this new year.
Analysts continue to believe that interest rates could be reduced in the second quarter of 2024. Lower interest rates can boost the market for new homes.
