Developer sales tumble 47% month-on-month in February amid lack of new launches

New private home sales (excluding executive condominiums) fell 47% month-on-month in February amid a lack of new launches, according to data released by the Urban Redevelopment Authority (URA).

The plunge in new private home sales (excluding ECs) last month also marked a 65.5% year-on-year drop. Consequently, developers sold just 149 new homes last month, down from 281 units in January.

A lack of major new project launches, compounded by the Chinese New Year festivities, likely contributed to the lower sales volume last month. This was the lowest monthly new home sales tally since last December, when developers moved only 135 new units.

However, after accounting for 34 EC units sold, developers' total sales last month rose to 183 units. Even so, including ECs, new home sales still fell 68.9% month-on-month from the 588 units transacted in January.

Projects that released units for sale last month included The Myst along Upper Bukit Timah Road, 19 Nassim on Nassim Hill, and Watten House on Shelford Road. The most expensive unit sold was a 3,035 sq ft, five-bedroom unit on the fifth floor of the freehold Terra Hill on Yew Siang Road. It was purchased by a foreigner for $8.05 million ($2,652 psf).

Top-Selling Projects

With no new project launches, developers' sales in February were driven by earlier-launched projects. Topping the sales charts (excluding ECs) was The Botany at Dairy Farm. The 386-unit condominium moved 15 units at a median price of $2,018 psf.

Following closely were the 275-unit Blossoms by the Park at Slim Barracks Rise, the 1,008-unit Grand Dunman on Dunman Road, and the 520-unit Pinetree Hill at Pine Grove, each recording 10 units sold.

Lumina Grand topped the best-selling EC chart for the second consecutive month, moving 16 units in February at a median unit price of $1,497 psf. Lumina Grand conducted its second round of balloting for buyers on 2 March. Hence, March could see sustained market interest in the development.

Sales momentum in the EC market has remained relatively steady, underpinned by attractive entry price points compared to the private condominium market. It is estimated that around 466 EC units remained unsold as of the end of February.

Sales in March are expected to pick up strongly with the launches of the 533-unit Lentor Mansion and the 267-unit Lentoria in Lentor Hills. In addition, the relaunch of the 192-unit luxury condominium Cuscaden Reserve on Cuscaden Road is expected to bolster home sales in March.

Consequently, new private home sales are projected to rebound from the previous month's performance, with March sales reaching between 400 and 600 units.

Around five projects are lined up for launch in April and May, including the 107-unit Arina East Residences in Tanjong Rhu, the 276-unit Kassia on Flora Drive, the 440-unit SORA in Jurong Lake District, The Hill @ One-North, and the 59-unit The Hillshore on Pasir Panjang Road.

Homebuyers remain price-sensitive and discerning given the ample choices available. Some prospective buyers may patiently adopt a wait-and-see approach, looking to enter the market in 2Q 2024 or closer to the second half of the year as they monitor market performance and potentially hold out for any interest rate cuts that may materialise later this year.

Barring unforeseen circumstances, developers could sell up to 7,000 new homes, while prices are expected to remain resilient with an increase of up to 5% in 2024.