In 2023, new private home sales in prime districts remained strong despite a slowdown in demand

Private homes in the most sought-after district were snapped up more quickly than those on the edge of the city and in the suburbs. This is due to the lack of new residential developments in this area.

According to the Urban Redevelopment Authority’s (URA) data, 505 new private homes were launched in the central core region (CCR) between January and September 2023. However, 1,182 of these homes were sold. The additional homes sold were new homes from already launched projects.

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In contrast, 4,183 new units were launched and 2,747 private homes sold on the edge of the city. Developers launched 1,803 homes in the suburbs and sold 1,230.

In 2023, is expected to have the lowest new home sales in a year since 2008 when only 4,264 units sold.

Analysts attribute the decline to factors like high interest rates, and a second round of property cooling in April.

According to URA data the median price of new homes in the prime area rose by 18.9% – from $2.496 per square foot (psf), to $2.968 per sq ft psf, from 2020 to the 11 first months of 2023.

The median price of new homes in the city edge rose by 38.4 percent, from $1.814 per square foot to $2.510 per square foot. While the median price for suburban homes increased from $1.548 to $2.113.

The Cairnhill is one of many new developments in the district. Others include Skywaters Residences and Newport Residences.

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Due to property curbs, buyers are expected to be cautious and remain prudent, as the market remains stable.

Geopolitical tensions and macroeconomic headwinds will continue weighing on housing demand in the first six months of 2019.

Analysts are still hopeful that interest rates will be cut in the second half 2024. Lower interest rates may boost the new home market.