Developers sales up 369.3% in March

The market for new homes sprang into action during March when developers sold 718 private residences, excluding executive condominiums (ECs), in the month. This was an impressive 369.3% increase from the 153 sales in February.

Developer sales for March increased 45.9% year-over-year compared with the same period in 2013. Last month’s stellar performance in the new home market is most likely due to pent up demand. There were no new launches last February.

GuocoLand’s Lentor Mansion with 533 units was the main driver of new private home sales in March. It was released for sale on March 15-16. Buyers snapped it up in droves, with 409 units being sold (76.7%). This is the best-selling launch of all time, based on the number of units.

Lentor Mansion was notable for its sales performance, given that this was the first development to be affected the government’s new harmonisation of the gross floor area (GFA).

Lentoria (267 new units) and Ardor Residence (35) were also launched in March. Koon Seng House (17 new units) was also launched. The total number of private homes for sale last month was 877, the highest since November 2011 when 970 new units were introduced to the market.

Last month, however, the launch of Watten House saw the highest transaction value, with a 3,412 sf penthouse selling for $11.8m ($3,457/sf).

Lumina grand, a EC project, also continued to be a driving force in the EC sector last month. The 512 unit project sold 61 additional units during the second balloting round held on 2 March. It is now 72.3% complete as of end of March 2024.

The number has fallen to 358 from 466 units last February. There will be a shortage in the market of EC units as there won’t be any more EC launches until 2024.

Lentor Mansion’s and Lentoria’s launches last month were crucial to the performance of the primary markets last month, and they accounted for 65.3% total developer sales. Their launches captured both buyers and investors. They significantly drove the momentum in the launch market, contributing to overall sales growth.

Five new projects have been launched in Lentor Hills Estate over the last two decades, including Lentoria and Lentor Mansion. Hillock Green and Lentor Hills Residences are two other new projects in the area.

The continued interest demonstrates the positive market response to the new neighbourhood. This shows the robust demand for properties in the Lentor Hills area. The area is still in a relatively undeveloped state and the demand for properties is high.

The recent launches of new properties in the area have not seemed to affect buyers’ confidence, which is a sign that the area has great potential.

The preliminary data on housing indicates that developers will sell 1,175 units by 1Q2024. This is an increase from 1,092 units sold in 4Q2023.

The sustained sales growth in the new-home sales segment indicates that buyers are still looking for quality projects and investing in them strategically.

The successful launch of Lentor Mansion will encourage developers to roll out more launch-ready projects in the future. This month, the market will be closely watching four new developments — Jansen House, Straits at Joo-Chiat, The Hill @ One-North, and The Hillshore.

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