Singapore Private Home Sales Bounce Back but Remain Below 2022 Levels

Developers sold 391 homes in Singapore last month, more than doubling the 170 units transacted in December but still lower than the January 2022 total, according to data from the Urban Redevelopment Authority.

Sales of new private homes (excluding executive condos) fell by 43 percent in January from the 684 units sold a year earlier. The 391 units shifted in January marked the highest monthly sales figure since 987 changed hands last September, PropNex Realty said Wednesday in a release.

The Outside Central Region led new home sales in January with 185 units, up sharply from the 27 moved in the previous month. The best-selling project was the 268-unit Sceneca Residence in Tanah Merah — the sole new launch in Singapore last month — with the MCC Land development accounting for 157 units sold at a median price of S$2,083 (now $1,561) per square foot.

“The healthy sales launch at Sceneca Residence in January could set the tone for major launches to come and it bodes well for new private home sales this year,” said Wong Siew Ying, head of research and content at PropNex.

Core Central Surge

In the Core Central Region, new home sales surged 78 percent from 89 units in December to 158 in January, led by Leedon Green in Bukit Timah. The joint venture project of Hongkong Land affiliate MCL Land and Shanghai-based Yanlord sold 21 units at a median price of S$2,957 per square foot.

New home sales fell by 11 percent month-to-month to 48 units in the Rest of Central Region, where Frasers Property’s Riviere was the most popular project with 13 units trading at a median price of S$3,087 per square foot.

A dearth of RCR launches and the paring down of unsold stock have led to more subdued sales in the submarket in recent months, PropNex said.

Developers sold 159 new executive condos in January, down from the 468 units sold a month earlier when the launch of Tenet EC in northeastern Singapore’s Tampines area delivered a boost. Tenet continued to lead EC sales last month, moving 145 units at a median price of S$1,388 per square foot.

Buyers Ready to Pounce

New launches in the year ahead should unleash pent-up demand from buyers who sat out the market amid limited options in 2022, said Chia Siew Chuin, head of residential research for Singapore at JLL.

Project launches scheduled for the first quarter include Hoi Hup and Sunway’s Terra Hill at the former Flynn Park condo site, Sim Lian Group’s The Botany at Dairy Farm in Bukit Panjang and EL Development’s Blossoms by the Park at Slim Barracks Rise.

The higher marginal buyer’s stamp duty for higher-value residential properties that took effect this week is unlikely to hurt homebuying demand for mid- and high-end properties, Chia said, though buyers in the mass-market segment will be more price-sensitive.

“On a brighter note, the anticipated return of Chinese buyers, particularly to the high-end/luxury segment of the residential market, will add to overall sales numbers,” she said, noting that JLL expects private home sales to reach 7,500-9,000 units in 2023.