December 2022 sees 170 private new homes sold, lowest since January 2009

Developers sold just 170 new homes (excluding executive condominiums) in December 2022, a 34.6% plunge from the 260 units sold a month earlier. On a year-on-year basis, new home sales fell 73.8%. This marks the third consecutive month-on-month decline in new home sales. The lack of new private residential launches and a seasonal lull contributed to the low sales.

The sale of executive condominium units, however, saw a surge in December 2022. 468 units were sold, up from 186 units a month earlier. This was attributed to the launch of Tenet, the 618-unit EC in Tampines. The project saw a take-up rate of 93% (576 units) with a median price of $1,381psf.

Including ECs, new home sales totalled 638 units last month, up from 446 units sold in November 2022. High demand for ECs continued due to the success of Copen Grand, the 639-unit EC in Tengah.

Core Central Region (CCR) transactions dominated the new home sales tally in December 2022, hitting 89 units excluding ECs. The top-selling project in the CCR was Leedon Green, which saw 11 units moved at a median price of $2,886 psf.

Foreign buyer transactions made up 22% of the total new home sales for the month. For the whole of 2022, foreign buyers purchased a total of 502 new homes, which is 7% of all new private housing sales.

Looking at the new home sales for the whole of 2022, 7,153 units were sold – 45.1% lower than in 2021. This is the lowest annual new home sales figure since 2008. Developers launched 4,528 units excluding ECs in 2022 – the lowest annual volume recorded since the data was made available by URA.

In the coming months, new home sales may remain muted. To kickstart the year, Sceneca Residence, Senja Close EC the 268-unit project in Tanah Merah Kechil Link, saw 160 units (about 60%) sold at an average price of $2,072 psf on its launch day.

Up to 12,000 new private homes could be launched throughout this year, providing some relief to the undersupplied market and more options for home buyers. Nonetheless, economic uncertainties may dampen sentiment and ERA Head of Research & Consultancy Nicholas Mak estimates that developers could sell about 9,000 to 10,000 housing units this year.