Private Home Sales up in February 2023: A Comprehensive Analysis

Overview: A Promising Month for Private Home Sales

In February 2023, developers experienced a notable increase in private new home sales, reaching a total of 432 units sold (excluding executive condominiums) according to data from the Urban Redevelopment Authority (URA). This figure represents a 9.9% month-on-month growth compared to the 393 units sold in January 2023. Although the number of sales is still 20.3% lower than February 2022, and 28% below the average sales for the past five years in February, experts see this as a positive sign for the market.

Key Developments: Terra Hill and Gems Ville

Last month, the market saw the launch of two new projects: Terra Hill and Gems Ville. Terra Hill, a 270-unit freehold project developed by Hoi Hup and Sunway Developments, is located on Yew Siang Road. Gems Ville, on the other hand, is a 24-unit freehold boutique development along Lorong 13 Geylang.

Terra Hill emerged as the top-selling project in February, with 97 units sold at a median price of $2,699 psf. Its sales accounted for 22% of the total new private home sales for the month.

Sales Growth Driven by Core Central Region Projects

The Core Central Region (CCR) played a significant role in driving sales for February, with 51.4% of developer sales attributed to CCR projects. In total, 222 private housing units were sold in the CCR primary market, more than double the 107 units released in the previous month.

As stated by Tricia Song, the head of research for Southeast Asia at CBRE, seven out of the ten highest-performing projects in February were freehold developments located within the Core Central Region (CCR). Among them were Pullman Residences Newton, which sold 38 units at a median price of $3,171 psf, and Leedon Green, which sold 21 units at a median price of $2,943 psf.

Steady Foreign Demand for Luxury Homes

In February, foreign buyers also maintained a steady interest in the market. Non-permanent residents purchased 54 new homes, compared to 53 units in January. This marked the highest monthly sales to foreigners since June 2022. Most of these buyers chose luxury homes, with 35 new condos purchased in the CCR.

Looking Ahead: Upcoming Launches and Projections

Market experts anticipate that sales volumes in March will be supported by The Botany at Dairy Farm, a 386-unit project developed by Sim Lian Group. The 99-year leasehold project saw over 48% of its units taken up during its launch weekend at an average price of $2,070 psf.

Several other launches are expected to boost new home sales momentum in the coming months. These include Blossoms by the Park at Slim Barracks Rise by EL Development; Tembusu Grand at Jalan Tembusu by City Developments and MCL Land; The Continuum at Thiam Siew Avenue by Hoi Hup and Sunway Developments; and The Reserve Residences at Jalan Anak Bukit by a joint venture between Far East Organization and Sino Group.

Leonard Tay, head of research at Knight Frank Singapore, believes that these new launches may encourage more buyers to enter the market. He maintains a full-year projection for new private home sales of about 7,000 to 8,000 units for 2023. Other consultants’ forecasts also remain unchanged, ranging from around 7,000 to 9,000 units.