Developers sell 432 private new homes in February, 9.9% higher m-o-m

New home sales in August hit 14-month low of 355 unitsDeveloper sales in July continue downtrend, plunging 39.1% m-o-m

In February 2023, 432 new homes excluding executive condominiums (ECs) were sold in Singapore, according to data from the URA. While this is a 9.9% increase from the previous month, it is still 20.3% lower from the figure of February 2022 and 28% below the five-year average for February. Despite this, analysts view the increase from January’s as an encouraging sign, due to the fact that this comes with only one medium-size and one small project released, as well as high-interest rates and cooling measures.

From the 401 units released in February, Terra Hill (270-unit freehold by Hoi Hup and Sunway Developments) and Gems Ville (24-unit freehold boutique by Lorong 13 Geylang) made up the largest portion. Remaining units came from ongoing projects.

Lee Sze Teck, senior director of research at Huttons Asia, states that the increase in Buyer’s Stamp Duty (BSD) from the Budget announcement did not seem to have affected the number of purchases. In fact, Terra Hill, which was launched after the Budget announcement was the top-selling project for the month, with 97 units sold at a median price of $2,699 psf.

Analysis from JLL’s Chia Siew Chuin and OrangeTee & Tie’s Christine Sun show that the bulk of sales, 51.4%, were Core Central Region (CCR) projects, more than double the amount released in January. This could be due to investors’ desire for freehold assets for wealth preservation in these uncertain times.

Seven of the top ten performing projects in February were freehold in the CCR, such as Pullman Residences Newton (38 units at a median price of $3,171 psf) and Leedon Green (21 units at a median price of $2,943 psf). The narrowing price gap between RCR and CCR new launches is also likely to draw more buyers in the coming months.

Senja Residences is a 99-year leasehold executive condominium in Bukit Panjang offering 300 units of 3-4 bedroom apartments, dual key units, penthouses & amenities. Near Bukit Panjang Transport Hub, residence can enjoy convenience & flexibility for multigenerational families with MRT, Senja Close EC LRT & Bus Interchange.

Foreigners also showed interest in Singapore properties, with 54 new homes acquired by non-permanent residents, the highest since June 2022. Furthermore, 35 private condos in the CCR were sold.

In view of the optimistic outlook for March, Tricia Song of CBRE’s research has said that 59 units of The Botany at Dairy Farm, Sim Lian Group’s 386-unit project at Dairy Farm Walk were quickly taken up at an average price of $2,070 psf. Other new launches in the pipeline are expected to attract buyers and further bolster sales, such as EL Development’s Blossoms by the Park, Tembusu Grand, The Continuum and The Reserve Residences.

Given the new price benchmarks set by Terra Hill and The Botany at Dairy Farm, Leonard Tay of Knight Frank Singapore believes that buyers will still be willing to purchase new homes despite current pessimism. This is reflected across many othes consultants’ unchanged full-year forecast for 2023, ranging from 7,000 to 9,000 units sold.

Hottest New Launch Condo and Landed Property in Singapore

Don’t miss out on the hottest new launch condo and new landed property in Singapore! February saw 432 home sales, with Terra Hill and Gems Ville leading the way. Core Central Region (CCR) sales were strong at more than double the amount released in January, indicating that buyers are still interested in freehold assets and luxury homes.

Looking ahead, The Botany at Dairy Farm and other upcoming launches like EL Developments’ Blossoms by the Park, Tembusu Grand, The Continuum and The Reserve Residences are expected to drive sales. With new price benchmarks set by Terra Hill and The Botany at Dairy Farm, Leonard Tay of Knight Frank Singapore is still confident in their full-year projection of 7,000- to 8,000-unit sales for 2023.