Singapore February Home Sales Down 66% Amid Project Vacuum

New private home sales in Singapore fell 65.6 percent year-on-year in February in the absence of new projects, according to data released by the Urban Redevelopment Authority on Friday.

The monthly sales tally of 149 homes (excluding executive condos) was down 47 percent from January’s 281 units, which itself was the lowest figure for the first month of the year since 2009.

The Lunar New Year lull and a lack of fresh project launches weighed on city-state residential transactions last month, said Wong Siew Ying, head of research and content at local brokerage PropNex Realty.

“In addition, the various rounds of cooling measures introduced since December 2021, the still high interest rates, uncertain market sentiment, and perhaps some buyer fatigue also continued to put a drag on sales,” Wong said in a release.

Median Prices Dip

The Outside Central Region and the city-fringe Rest of Central Region led sales in February as developers shifted 58 new units in each submarket.

Sim Lian Group’s The Botany at Dairy Farm was the top-selling OCR project with 15 units sold at a median price of S$2,018 ($1,509) per square foot, followed by three projects transacting eight units each: Hillock Green (S$2,242 per square foot), a joint venture of Soilbuild and Chinese groups CCCC and Yanlord; Lentor Hills Residences (S$2,099), a GuocoLand JV; and City Developments Ltd’s The Myst (S$2,238).

The most popular RCR projects in February were EL Development’s Blossoms by the Park, SingHaiyi Group’s Grand Dunman and UOL-SingLand’s Pinetree Hill, each selling 10 units at respective median prices of S$2,585, S$2,532 and S$2,468 per square foot.

In the Core Central Region, a proxy for luxury homebuyers, developers sold 33 new homes, up from 25 in January. The best-selling CCR projects were Low Keng Huat’s Klimt Cairnhill and One Bernam, a JV of MCC Land and Hao Yuan Realty, with five units each sold at median prices of S$3,434 and S$2,567 per square foot.

The median price in the CCR fell 3 percent from January to S$3,087 per square foot, while median prices in the RCR and OCR dipped 0.5 percent to S$2,561 and 1 percent to S$2,059, respectively.

“The fall in median unit prices in February may be attributed to lower unit pricing for home units with larger floor areas or less desirable attributes that were sold during the month,” said Chia Siew Chuin, head of residential research for Singapore at JLL.

Rebound on the Cards

This month’s market performance may provide a more accurate reflection of buyer sentiment compared with February, given the shorter month’s lack of new launches, according to OrangeTee.

“New home sales are anticipated to bounce back in March due to the launch of a major project, Lentor Mansion, in the suburbs, and the relaunch of the luxury condominium, Cuscaden Reserve,” said Christine Sun, senior vice president for research and analytics at the local consultancy.

CBRE forecasts full-year sales of 7,000-8,000 new homes, up from 6,421 in 2023 but still below the five-year average of 9,288 units across 2019-23. Downbeat macroeconomic conditions, cooling measures and high interest rates are likely to continue weighing on home sales, the agency said, though sentiment could improve if rates ease and the economy recovers.

“Correspondingly, private residential prices could rise 3 to 4 percent in 2024, slowing from 2023’s 6.8 percent,” said Tricia Song, CBRE’s head of research for Singapore and Southeast Asia. “A significant correction is not expected given still-low unemployment rate, resilient household balance sheets, and low unsold inventory.”