New private home sales slump in Sept but recovery expected in Oct

Just 255 transactions amid dearth of new launches during Hungry Ghost Month

- Grace Leong Senior Correspondent

New private home sales slumped to a nine-month low in September following a breakout performance in August, amid a dearth of new launches during the Hungry Ghost Month.

Just 255 new homes — excluding executive condominiums (EC) — were moved during the month. This is down 88 per cent from 2,142 units transacted in August, and a 36 per cent drop from 401 units a year ago.

The sharp drop is partly due to only 20 new units being launched - markedly lower than the 2,496 new units launched in August.

But developers’ sales are expected to make a swift recovery in October.

Skye at Holland — the first launch in October — is already almost sold out. About 99 per cent, or 658 of 666 units, were sold at an average price of $2,953 per square foot (psf) over its weekend launch, which started on Oct 11.

Several other highly anticipated projects in desirable locations are expected to hit the market soon. They include the 462-unit Penrith in Margaret Drive, the 347-unit The Sen in Upper Bukit Timah, the 706-unit Zyon Grand in Kim Seng Road, and the 399-unit Faber Residence in Clementi.

Lower borrowing rates may potentially nudge some fence-sitters to act, said PropNex head of research and content Wong Siew Ying.

As at Oct 15, the three-month compounded Singapore overnight rate average or Sora, which banks use to price home loan packages, has eased to around 1.4 per cent per annum. This is the lowest since around mid-August 2022.