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

New Private home sales in August dip 44.9% m-o-mSINGAPORE (EDGEPROP) – 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.

Despite the challenges of high-interest rates and cooling measures, 432 new homes excluding executive condominiums (ECs) were sold in February 2023 – a 9.9% increase compared to the 393 units sold the previous month. Although this figure is 20.3% lower than February 2022’s volume, and 28% below the past five-year sales average for the month, it marks a second consecutive month of improvement, following a 130% m-o-m surge reported in January.

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Christine Sun, OrangeTee & Tie’s senior vice president of research & analytics says this sales performance is encouraging, given that only one mid-size and a small project were launched. Chia Siew Chuin, head of residential research, research and consultancy at JLL, suggests that the buy-wait-watch strategy adopted by some buyers and the anticipation of future launches could be the reason for the dip in sales.

On the other hand, the announced hike in Buyer’s Stamp Duty (BSD) on Feb 14, as part of the Budget announcement, hasn’t dampened buyers’ spirits. Terra Hill, the 270-unit freehold project by Hoi Hup and Sunway Developments on Yew Siang Road, launched after the Budget was announced and was the top-selling project for the month with 97 units sold at a median price of $2,699 psf.

The bulk (51.4%) of February developer sales were from the Core Central Region (CCR). Marcus Chu, CEO of ERA Realty Network, notes that 222 private housing units were sold in the CCR primary market, more than double the 107 units released in the CCR last month and a 40.5% m-o-m increase. This could be due to investors looking for freehold assets for wealth preservation, according to Tricia Song, CBRE’s head of research, Southeast Asia.

Tengah EC is a new eco-friendly executive condominium located in Tengah New District, close to Bukit Timah Nature Reserve and several recreational facilities. Initial launch Tengah EC phase is open exclusively to Singaporeans, and the development features a wind turbine, solar heating system, and a water conservancy centre. Tengah Plantation Loop EC GLS Tender is a land tender launched by the SLA in October 2020. Successful developer will be awarded the rights to develop and manage the new EC.

Leonard Tay, Knight Frank Singapore’s head of research, believes that The Botany at Dairy Farm and Terra Hill setting new price benchmarks for their respective neighbourhoods indicate that buyers are prepared to pay for new homes despite the present pessimism. He has maintained his full-year projection of 7,000 to 8,000 new private home sales for 2023.

The number of new homes purchased by foreigners also remained consistent last month, with 54 new homes acquired by non-permanent residents, higher than the 53 units in January. Most foreign buyers bought luxury homes in the CCR, according to OrangeTee & Tie’s Sun.

Looking ahead, CBRE expects sales volume in March to be supported by The Botany at Dairy Farm, Sim Lian Group’s 386-unit project at Dairy Farm Walk. 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.