New homes in the prime districts is expected to slow down in 2023.
The prime district has seen more private homes sold in 2023 than the suburbs and city fringe.
Data from the URA shows that between January 2023 and September 2023 there were 505 homes built in the core central area (CCR), yet 1,182 homes were sold.
Additional homes were sold from new homes that came out of projects that had already been launched.
Developers launched 4,183 units and sold 2,747 new homes in the suburbs. In the suburbs developers built 1,803 new houses and sold 1,230.
By 2023, will likely record its lowest annual new home sales rate since 2008 (4,264 units).
Analysts have attributed this slump to factors including high interest rates and another round of cooling measures for property in April.
URA data shows the median prices for new private homes in prime districts rose 18.9% from $2,496 to $2,968 per sq ft between 2020 and the first eleven months of 2023.
In the same time period, the median price of a new home in the city fringe increased by 38.4 %, going from $1.814 psf up to $2.510 psf. Meanwhile, the median price in suburban areas rose from $1.548 psf up to $2.113 psf.
The Cairnhill Residences are some of the most recent launches in this district. Also, keep an eye out for Skywaters Residences. Newport Residences. 21 Anderson. One Leonie Residences.
Prices are expected to remain stable due to the increased supply of condos by 2023 and property curbs.
Analysts still remain optimistic that rate reductions could occur in the second halves of 2024. Lower interest rate could give a boost to the home building market.