Buyers Return in Full Force Post-Rate Cuts: October New Private Home Sales Hit Year High

October New Private Home Sales Surge to 2,424 Units, Soaring 9.5 Times from September! Full-Year Sales Set for Three-Year High

With the lull of the Hungry Ghost Festival now behind us, Singapore's new private residential market rebounded sharply in October. According to flash estimates released by the Urban Redevelopment Authority (URA) on 17 November, developers sold 2,424 new private homes (excluding Executive Condominiums) in October. This marks a staggering 9.5-fold increase compared to September, making it not only the highest monthly tally this year, but also the strongest performance since November last year.

In the first 10 months of this year, cumulative new private home sales reached 10,299 units, far outpacing last year's total of 6,469 units by nearly 60%. The market widely expects full-year new home sales to hit around 11,000 units, setting a new benchmark since 2021.

Leonard Tay, Head of Research at Knight Frank Singapore, pointed out that despite uncertainties in the global economic landscape, factors such as the interest rate cuts in September, persistently low unemployment, and resilient household incomes and savings were key drivers behind the massive resurgence in October sales. In particular, the easing of interest rates nudged many sideline buyers back into the market, significantly spurring demand for new launches.

Across market segments, the Rest of Central Region (RCR) continued to take the lead. With 1,168 new units launched and factoring in earlier rollouts, the RCR recorded 1,225 units sold in October, emerging as the top-performing segment across all three regions. The Core Central Region (CCR) launched 666 units and sold 724 units, reflecting sustained strong appetite for prime properties. Meanwhile, the mass-market Outside Central Region (OCR) launched 399 units and moved 475 units, presenting steady yet comparatively moderate numbers alongside the other two segments.

The blistering October performance was also buoyed by the concurrent rollout of several major new projects, including Skye at Holland in Holland Village, Faber Residence in Clementi, Penrith in Queenstown, and Zyon Grand along Zion Road.

The standout performer was undeniably CCR project Skye at Holland. Moving 662 units at a median price of $2,949 psf, the project accounted for over 90% of total sales in the segment, making it the top-selling new launch in October.

According to Huttons Asia data, Singapore Citizens accounted for 86.7% of October sales, while Permanent Residents (PRs) made up 12%, demonstrating that local demand continues to anchor the market. More than two-thirds of the transacted homes were priced between $2 million and $5 million. Notably, foreign buyers made a discernible comeback in October with 31 transactions—more than double the 15 recorded in September.

Mark Yip, Chief Executive Officer of Huttons Asia, noted that foreign interest was primarily concentrated in new launches, with Zyon Grand clocking 11 foreign purchases and Skye at Holland logging nine. A Cambodian buyer also snapped up a unit at One Marina Gardens for $5.1 million. He observed that against a backdrop of global volatility, foreign buyers are drawn to Singapore's reputation as a safe haven with high stability and a strong currency, prompting them to invest in local property despite the hefty 60% Additional Buyer's Stamp Duty (ABSD).

Overall, bolstered by healthy new launch supply, revived buyer confidence, and interest rate cuts stoking buying appetite, the new private residential market has quickly picked up steam following the third quarter. If this momentum extends into the final two months of the year, Singapore's full-year new private home sales are well on track to surpass 11,000 units, marking the strongest showing in nearly three years.