Singapore Private Home Sales Hit Nearly 14-Year Low Amid Launch Lull

Developers sold a mere 170 new private homes in Singapore last month, the lowest monthly tally since 108 units were transacted in January 2009, according to government data released Monday.

The anaemic sales figures, which were updated by the Urban Redevelopment Authority and exclude executive condos, could be attributed to the lack of major private residential project launches in December and the year-end seasonal lull, PropNex Realty said in a release.

Sales of executive condos, meanwhile, were boosted by the launch of Tenet EC, as the project in northeastern Singapore’s Tampines area sold 451 of its 618 total units in December. Developers overall sold 468 new ECs, a public-private housing hybrid, during the month, up from 186 units in November.

“Taking in December’s sales, developers sold an estimated 7,153 new private homes in 2022, sharply down from the robust sales of 13,027 in 2021,” said Wong Siew Ying, head of research and content at PropNex. “Based on the transaction data, this would be the lowest annual new home sales since 2008.”

CCR Tops in December

The Core Central Region accounted for 52 percent of December sales, or 89 units, down from 149 units in November. CCR projects were led by Leedon Green, a joint venture of Hongkong Land affiliate MCL Land and Shanghai-based Yanlord Land, as the District 10 development chalked up 11 transactions at a median price of S$2,886 ($2,184) per square foot.

In the Rest of Central Region, developers sold 54 new private homes in December, down from 73 the previous month. MCC’s The Landmark and Frasers Property’s Riviere were the top-selling projects in the RCR, shifting 14 units each at a median price of S$2,590 and S$2,978 per square foot, respectively.

Sales in the Outside Central Region remained lacklustre in December as buyers picked up 27 new homes across eight projects amid dwindling unsold inventory in the OCR, according to PropNex.

“While December’s sales of 170 units seem relatively dismal, we think it is largely a function of the lack of major launches during the month, as well as the depleted unsold stock, particularly in the RCR and OCR where the bulk of the owner-occupied and HDB upgrader demand sit,” Wong said. “Meanwhile, revenge travel post-pandemic could also have taken buyers out of the market.”

Sceneca Shows Spark

In the year ahead, pent-up interest for well-located projects is likely to drive new home sales, said Mohan Sandrasegeran, senior analyst for research and content creation at One Global Group.

“This trend is already evident in the success of the first new launch project, Sceneca Residence, which sold 60 percent of units on the launch day, demonstrating a strong appetite for well-situated properties,” Sandrasegeran said.

MCC’s 268-unit Sceneca, which will link to Tanah Merah MRT station upon completion in 2026, moved its launch units at an average price of S$2,072 per square foot, according to PropNex.