Over 3,500 new private homes set to be launched in Q4

In the fourth quarter of 2023, more than 10 private residential projects are poised to launch, offering over 3,500 housing units. Despite a decrease in homebuyer interest and persistent high financing and land costs due to cooling measures in the real estate market, industry analysts anticipate that prices will remain stable.

Among these launches, five projects scheduled for Q4 are expected to yield approximately 2,370 units. This comes as the inventory of unfinished properties continues to grow due to slower uptake in new projects.

Recent data from the Urban Redevelopment Authority’s Realis platform shows that the median price for mass-market segment properties, including suburban private homes in the Outside Central Region (OCR), is around S$2,074 per square foot. In the city fringe (Rest of Central Region or RCR), new home sales have a median price of S$2,511 psf, while in the prime Core Central Region (CCR), it reaches S$2,903 psf.

In 2022, developers introduced 15 new private residential projects with 4,528 units (excluding executive condominiums). So far this year, they have launched 17 private non-landed projects with a combined total of 6,773 units, according to CBRE.

One of the upcoming projects set to launch soon is Hillock Green, a 474-unit condominium developed by Yanlord Land Group, China Communications Construction Company, and Soilbuild Group Holdings. Another project in the pipeline is the freehold Watten House, located in the city center, developed by UOL and Singapore Land.

Three mixed-use development launches are also in progress, including the massive 748-unit Marina View Residences condo developed by IOI Properties, CapitaLand‘s redevelopment of JCube mall into the 368-unit J’den condo, and the 215-unit Skywaters Residences at the former AXA Tower site, developed by a consortium led by Perennial Holdings.

Over half of the new launches expected in the last quarter of the year will be in the suburbs (OCR). These include District 23 (Upper Bukit Timah), District 17 (Changi), District 22 (Jurong), and District 26 (Lentor and Upper Thomson).

In District 23, the 341-unit Hillhaven at Hillview Rise, developed by Far East Organization and Sekisui House, is expected to launch. In District 22, CapitaLand’s J’den condo is anticipated to have prices ranging from S$2,000 to S$2,100 psf, and the 440-unit Sora from Chip Eng Seng, KSH Holdings, and SingHaiyi Group will also be introduced.

In the new Lentor Hills estate in District 26, Hillock Green and Lentoria will join two existing condos. The consortium behind Hillock Green acquired the site for S$481 million, while Lentoria sits on land acquired for S$276.4 million.

In the Core Central Region (CCR), attention is on the Marina View Residences launch, while Watten House is also expected to draw interest.

The pricing trend for new launches this year has generally been above S$2,100 per square foot. Experts believe this pricing trend will continue due to high financing and construction costs and limited flexibility to adjust pricing for developers.

Land prices have declined since 2022, with top bids for Government Land Sale (GLS) tenders coming in at under S$1,000 per square foot per plot ratio. Developers may maintain higher launch prices with the option to lower them in the future, particularly as projects approach their Additional Buyer’s Stamp Duty (ABSD) deadline.

However, developers are cautious about pricing to maintain sales momentum, as buyers remain price-sensitive. While immediate cost pressures have eased, rising holding costs and interest rates may deter price reductions, leading to a stable pricing landscape in the near future.