The Arcady and Hillhaven 2024 Property Launch : Low sale on Launch day

 

2024 property sales kicked off on a low note.

2 years ago, new launches were selling like hotcakes. The trend back then was an average of 75-80% sold, with almost all 1-2 bedrooms snatched on launch day. Recently, there was a pullback to an average of 60-70% sold for 2023. Nonetheless, it was a decent sale, especially with the rising interest rate environment.

The Arcardy and Hillhaven Launch Day Sales

For 2024, The Arcady and Hillhaven were the Kickstarter for new launches this year. However, their dismayed performances might lead one to think that the private property market in Singapore might have effectively cooled. 

The Freehold 172 unit The Arcady located at Boon Jeng sold only 51 units ( 29.7%) or 172 units with starting prices just below $2400 psf and an average psf of $2570. The 99-year Hillhaven located at Hillview Rise sold 59 units out of 179 units released. However, the actual take-up rate is 17.3%, based on a total of 341 units.  Prices of Hillhaven start from $1903psf.

Interestingly, The Arcady has sold all 1 bedroom (11 units) but only 25 out of 76 2-bedroom units. While  Hillhaven has no 1 bedroom, their 2 bedroom sales were only 38 out of 182 units. This starkly contrasts with the 2023 launches, where 1 and 2 bedrooms were mostly sold out on launch dates. Could this be a possible signal for investor fatigue since these configurations are the ones most investors would add to the portfolio?

Property Outlook for 2024

While a few agents claim that 2024 will be a year where interest rates drop and demand increases, these new launch performances may imply otherwise.  Moreover, the new launches for 2024 are mostly priced above $2100 psf for 99-years. With rising inflation, increased cost of living, and continuously high interest rates (the latest interest rate offered by banks is still above 3%), this may be a lacklustre year for property sales.

For context, over 35,000 registered agents garnered a mere 110 sales for the first 2 launches of 2024. Things are looking bleak on the property front.