Developer Sales Went Up 369.3% in March with 718 Units Sold
In March, the new home sales market was jolted to life as developers sold 718 private homes (excluding executive condominiums). This is a significant increase of 369.3% compared to the 153 transactions that took place in February.
The developer sales in March were up 45.9% on an annual basis compared to last year’s same period. It is believed that the stellar performance of new home sales last month was due to the pent-up market demand.
GuocoLand’s Lentor Mansion of 533 units, which was put up for sale during the weekend of March 15-16, accounted for most of last month’s new home sales. Buyers bought 409 units (76.7%), making it the most popular new launch in terms of sales in the first three months of the year.
Lentor Mansion’s sales success is notable, as it was the very first new residential development affected by the government’s harmonisation on gross floor area.
Lentoria (with 267 units) and Ardor Residence (35 Units) are also projects that were launched in March. Koon Seng House (17 Units) was another project. Last month, 877 private homes were launched on the market, which is the highest number since November of last year when 970 units entered the market.
The official launch of Watten House last month recorded the highest price transaction, with a penthouse measuring 3,412 square feet sold for $11.8million ($3,457 per sqft).
Lumina Grande, a project of the EC, continued to drive the EC market in the last month. The second balloting round on March 2 saw 61 more units sold for the 512-unit Lumina Grand project. This brings its total to 72.3% by end-March 2024.
The number of unsold ECs has dropped to 358 units, down from 466 in February. A shortage of ECs is expected on the market in 2024 as there will be no more EC launches.
Lentor Mansion & Lentoria’s launch last month was a major factor in the performance of primary market and contributed 65.3% to total developer sales. He says that their launches attracted both investors and buyers, and contributed to the overall boost in sales.
In the last two years, Lentor Hills has launched five new projects. Hillock Green, Lentor Hills Residences and Hillock Green are also new developments in this area.
The market’s continued interest in the Lentor Hills estate is a testament to its positive response. It shows that demand for property within the Lentor Hills Estate remains strong. It is especially noteworthy, given that the area is relatively undeveloped and is still undergoing transformation.
Buyers appear unfazed at the recent launches of new products in the region, showing confidence in its potential.
According to preliminary housing data, developers are expected to move 1,175 homes in 1Q2024 compared with 1,092 in 4Q2023.
The continued sales momentum in the segment of new home sales suggests that there’s still a underlying appetite for launches and buyers are looking to strategically invest in quality projects.
Developers will use the success of Lentor Mansion to encourage them to launch more projects. Market watchers will likely monitor the progress of sales for four new projects this month — Jansen House; Straits at Joo-Chiat; The Hill @ One-North and The Hillshore.
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