December 2022 sees 170 private new homes sold, lowest since January 2009

In December 2022, developers sold just 170 new homes excluding executive condominiums (ECs), a 34.6% plunge from the 260 units sold a month earlier. This is the lowest monthly sales volume in the primary market since January 2009. Low sales in December 2022 were largely attributed to the lack of new private residential launches, with only 45 units excluding ECs launched for sale – the lowest figure since URA started reporting the data in June 2007.Excluding ECs, new home sales totalled 638 units last month, up from the 446 units sold in November 2022. Core Central Region (CCR) led sales with 89 units, making up 52% of the monthly total, while Rest of Central Region (RCR) and Outside Central Region (OCR) saw 54 and 27 units respectively being sold.Sales driven by foreign buyers continued to pick up in December 2022, making up 37 transactions or 22% of new home sales.New home sales excluding ECs for the whole of 2022 total 7,153 units, a 45.1% y-o-y decline from 13,027 units in 2021. This represents the lowest annual new home sales since 2008, when 4,264 units were sold. Foreign buyers purchased 502 new homes in 2022, representing a total of 7% of new private housing sales for the year.In the coming months, new home sales may remain muted due to a gloomy economic outlook and the Chinese New Year seasonal lull. Nonetheless, January sales are likely to be bolstered by Sceneca Residence, the 268-unit project in Tanah Merah Kechil Link. Up to 12,000 new private homes could be launched throughout this year, providing some relief to the undersupplied market. Economic uncertainties, including rising interest rates and employee layoffs, may dampen sentiment and lower new home sales (excluding ECs) of 7,000 to 8,000 in 2023, while prices are forecast to grow by 5% to 7%. December 2022 saw the lowest monthly sales volume in the primary market since January 2009, when developers sold 108 new homes. This marks the third consecutive month decline in new home sales due to a lack of new private residential launches, alongside the year-end seasonal lull, cooling measures rolled out on Sept Tengah EC 30, 2022, and a deteriorating economic backdrop. Core Central Region (CCR) led sales in December 2022 with 89 units, followed by Rest of Central Region (RCR) with 54 units and Outside Central Region (OCR) with 27 units. Sales driven by foreign buyers continued to pick up, making up 37 transactions or 22% of new home sales. New private home sales excluding ECs for the whole of 2022 total 7,153 units, a 45.1% y-o-y decline from 13,027 units in 2021. Up to 12,000 new private homes could be launched throughout this year, providing some relief to the undersupplied market. Economic uncertainties, however, may affect new home sales (excluding ECs) of 7,000 to 8,000 in 2023 and prices are forecast to grow by 5% to 7%.

In December 2022, developers sold just 170 new homes excluding executive condominiums (ECs), a dramatic drop of 34.6% from the 260 units sold a month earlier. This marks the third consecutive month decline in new home sales – the lowest monthly sales volume in the primary market since January 2009 – due to a lack of new private residential launches, alongside the year-end seasonal lull, cooling measures, and a deteriorating economic backdrop.

Excluding ECs, new home sales totalled 638 units last month, up from the 446 units sold in November 2022. Core Central Region (CCR) led sales in December 2022 with 89 units, followed by Rest of Central Region (RCR) with 54 units and Outside Central Region (OCR) with 27 units.

Sales driven by foreign buyers continued to pick up, making up 37 transactions or 22% of new home sales – the highest monthly proportion of purchases made by foreign buyers throughout the year.

New private home sales excluding ECs for the whole of 2022 total 7,153 units, a 45.1% y-o-y decline from 13,027 units in 2021. This represents the lowest annual new home sales since 2008, when 4,264 units were sold. Foreign buyers purchased 502 new homes in 2022, representing a total of 7% of new private housing sales for the year.

In the coming months, new home sales may remain muted due to a gloomy economic outlook and the Chinese New Year seasonal lull; however, January sales are likely to be bolstered by Sceneca Residence, the 268-unit project in Tanah Merah Kechil Link. Up to 12,000 new private homes could be launched throughout this year, providing some relief to the undersupplied market.

Economic uncertainties, including rising interest rates and employee layoffs, may dampen sentiment and lower new home sales (excluding ECs) of 7,000 to 8,000 in 2023, while prices are forecast to grow by 5% to 7%.