New Launches 2023 Peformance : Have we reached a Peak?

Only 50% sold...

A year ago, new launches were selling out like hotcakes. Prices were soaring, and each new launch was setting record prices with impressive sales on 1st day of the launch, with many projects selling out at 75% on day 1. In 2023, the fortunes reverse, with most new launches selling at around 50% during Day 1 of the launch,

Here is a look at the sales figures for selected new launches in 2022/2023

Apr 2023  

Tembusu Grand - 638 Units

Tenure: 99 years, D15

Developer: CDL and MCL

53% Sold on Launch Day

Average Price sold: $2,465 psf

There are 1-5 Bedrooms (BR)  for this project. Prices start from $1.248m for 1-BR to $4.028m for 5-BR. Unlike the earlier launches, it was not a sell-out for 1BR and 2 BR. 1-2 BR are usually snapped up by investors looking to rent and would usually be almost sold out on day 1. For Tembusu Grand, there is a 22% 1BR and 2BR combination balance.

March 2023

Botany at Dairy Farm -386 Units

Tenure: 99 years, D23

Developer; Sim Lian Land and Sim Lain Development

48% sold on Launch Day

Average Price sold: $2,070 psf

There are 1-5 BR for this project. Prices start from $998,000 for 1-BR+ Study and $2.9m for 5-BR. All 36 1-BR and 93% of the 104 2-BR were sold on day 1.

Feb 2023

Terra Hill -270 Units

Tenure: Freehold, D5

Developer: Hoi Hip Realty and Sunway Developments

38% sold on Launch Day

Average Price sold: $2,650 psf

There are 2 to 5 BR for this project. The bulk of the sales is from the 2BR, with 52 out of 70 units sold. This was also one of the lowest performers for 2023.

Jan 2023

Seneca Residences - 268 Units

Tenure: 99 years, D16

Developer: MCC Singapore, Ekovest Development and The Place Holdings

60% sold on Launch Day

Average Price sold - $2,072 psf

Seneca Residences has 1-4BR for this project. Prices start at $958,000 for 1 BR and up to 5-6 million for Penthouses. The bulk of 1BR and 2 BR were sold on day 1.

Sep 2022

Sky Eden - 158 Units

Tenure: 99 years, D16

Developer: Frasers Property Singapore

70% sold on Launch Day

Average Price sold: $2,100 psf

Sky Eden has 2 to 4 bedrooms. It is a mixed-use development. The 2 BR were priced from $1.31m, and the 4 BR is priced from $2.6m. The 2 BR were fully sold on Day 1

May 2022

Liv@ MB - 298 Units

Tenure: 99 years, D15

Developer : Bukit Sembawang Estate

75% sold on Launch Day

Average Price sold: $2387 psf

Piccadilly Grand - 407 Units

Tenure: 99 Years

Developer: CDL and MCL Land

77% sold on Launch Day

Average Price sold: $2150 psf

The launches in 2022 have more success, with over 70% sell-out on average compared to the 50% average sell-out rate in 2023. Statistically, the units that sell out first are the 1-2 bedroom under 1.5m quantum. The 3BR and above options tend to move slowly.

Upcoming New Launches

We expect the take-up rate to hover around 40-50%. For the latter part of the year, there will be several mega launches, including The Continuum (D15), Grand Duman (D15), The Reserve Residences (D21) and Blossoms by the Park ( D5).

Given the number of units, high-interest rates and escalating prices, attracting new buyers in today's environment would be challenging.

What Real Estate Agent would not tell you, and why it matters to your buying decision

Most of the buyers are looking at 1 to 2 bedrooms

Units of these sizes are usually meant for investment due to the lower quantum. These units have the least potential capital appreciation due to their size.

Choice units are still available

FOMO can be a catalyst to wrong decisions.

Most investors will target the lower-priced units. That means units facing the main road, lower floors, and those with no views tend to be the ones that sell out earlier. Higher floor units are the last to sell, especially for 1-2 bedrooms. The bigger units and better-facing units tend to be the last to sell. 

3 Bedrooms and Above would usually have stock

If you are looking for bigger units, you are in luck. They are likely to be available even after launch day. You can shop for the right one if you prefer a bigger one. 

There are cheaper alternatives New Launches

Sometimes buyers are caught up with the current marketing hype and forget other options might exist. There may be better buys for 'older' new launches or new launches that had already TOP. This is because the land acquisition cost tends to be lower, and you could get more bang for your buck. 

(Almost )Everyone Pays the Same Price.

VVIP, Developer Discount and Early Bird Prices are just marketing gimmicks.

If you see an advertisement on Property Guru listing an agent at a price over 20% off similar listings, chances are you see an agent trying to fish for clients.Try to get the agent to confirm the price and they would usually say it is indicative or the market has moved.

During a new launch, most buyers WILL get the same prices. Discounts are only allowed for bulk purchases or exceptional cases (such as previous enbloc owners). Every other agent has to market at the same price, or the developer can penalise them. If you have seen such ads, best to avoid these agents.

You may not get your choice unit even if you have money

Most of the new launches are 'oversubscribed'. As a result, balloting is needed. Moreover, the buyers tend to target similar units (1-2 bedrooms). If you get the smaller units, you must set expectations or even a higher budget before balloting.

High loan interest rate is a deterrent

Higher loan interest rates  impacts the quantum loan that a buyer can take. This would reduce the demand for higher-priced units (ie the bigger units). In the long run, if high-interest rates continue, it may also affect rental returns.

The article was published in collaboration with SG Home Collection. If you want more information on the latest new launches, head to SG Home Collection for the latest new launch details.