Developers sell 432 private new homes in February, 9.9% higher m-o-m

/ EdgeProp Singapore |
Terra Hill was the top-selling project for the month, with 97 units sold at a median price of $2,699 psf (Picture: Samuel Isaac Chua/The Edge Singapore)
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SINGAPORE (EDGEPROP) - Developers sold 432 new homes excluding executive condominiums (ECs) in February 2023, according to URA data released on March 15. This is 9.9% higher than the 393 units sold the previous month.
However, it is 20.3% down from February 2022’s volume, and 28% below the past five-year sales average registered in the month of February. “This could be largely due to buyers waiting to choose from more project launches in the coming months, while some others could have held back to monitor the market,” comments Chia Siew Chuin, head of residential research, research and consultancy at JLL.
Nonetheless, it marks a second straight month of improvement, following the 130% m-o-m surge recorded for January. “The sales performance is encouraging, considering only one mid-size and a small project were launched, and buyers face challenges like high-interest rates and cooling measures,” says Christine Sun, OrangeTee & Tie’s senior vice president of research & analytics.
Developers released 401 new homes in February, on par with the 410 units released in January. The new launches last month were Terra Hill, the 270-unit freehold project by Hoi Hup and Sunway Developments on Yew Siang Road; and Gems Ville, a 24-unit freehold boutique development along Lorong 13 Geylang. The remaining homes released were from ongoing projects. “More units were released from Pullman Residences Newton, Jervois Prive and Leedon Green,” says JLL’s Chia.
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Commenting on the February sales figures, Lee Sze Teck, senior director of research at Huttons Asia, notes that the increase in Buyer’s Stamp Duty (BSD) announced on Feb 14 as part of the Budget announcement does not appear to have deterred buyers from purchasing a property. Terra Hill, which launched after the Budget was announced, was the top-selling project for the month, with 97 units sold at a median price of $2,699 psf. Located in the Rest of Central Region (RCR), the project contributed to 22% of last month’s new private home sales.
But the bulk (51.4%) of February developer sales were driven by Core Central Region (CCR) projects. “A total of 222 private housing units were sold in the CCR primary market, more than double the 107 units released in the CCR last month,” observes Marcus Chu, CEO of ERA Realty Network. It also marks a 40.5% m-o-m increase in CCR new home sales.
top 10 selling projects - EDGEPROP SINGAPORE
Tricia Song, CBRE’s head of research, Southeast Asia, adds that seven of the ten best-performing projects in February are freehold projects in the CCR. This includes Pullman Residences Newton, which moved 38 units at a median price of $3,171 psf, and Leedon Green, which moved 21 units at a median price of $2,943 psf. “This is indicative that buyers continue to see value in the CCR amid the narrowing price gap between RCR and CCR new launches,” she remarks.
CCR new home sales could also be underpinned by investors deploying their capital into freehold assets for wealth preservation amid heightened uncertainty, Song adds.
The number of new homes purchased by foreigners also stayed steady last month, with 54 new homes acquired by non-permanent residents, compared to 53 units in January. It is the highest monthly sales to foreigners since June 2022, notes OrangeTee & Tie’s Sun. “Most foreigners bought luxury homes last month, purchasing 35 new condos in the CCR," she says.
Looking ahead, CBRE’s Song says sales volumes in March should be supported by The Botany at Dairy Farm, Sim Lian Group’s 386-unit project at Dairy Farm Walk. Over 48% of units were taken up at the 99-year leasehold project during its launch weekend at an average price of $2,070 psf.
Pullman Residences Newton scale model - EDGEPROP SINGAPORE
Pullman Residences Newton was the second best-performing project, moving 38 units at a median price of $3,171 psf (Picture: Samuel Isaac Chua/The Edge Singapore)
In addition, other launches in the pipeline are expected to propel new home sales momentum in the coming months. Upcoming launches in the next two months include EL Development's Blossoms by the Park at Slim Barracks Rise; Tembusu Grand at Jalan Tembusu by City Developments and MCL Land; Hoi Hup and Sunway Developments' The Continuum at Thiam Siew Avenue; and The Reserve Residences at Jalan Anak Bukit by the joint venture between Far East Organization and Sino Group.
Leonard Tay, Knight Frank Singapore’s head of research, believes that the new launches may galvanise more buyers into action. Noting that The Botany at Dairy Farm and Terra Hill both set new price benchmarks for their respective neighbourhoods, he sees this as a signal that buyers are prepared to pay for new homes despite the present pessimism.
In that regard, he has maintained his full-year projection for new private home sales of about 7,000 to 8,000 for 2023. Other consultants have also kept their full-year forecasts unchanged, ranging from around 7,000 to 9,000 units.

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