Developers launch more units as new private home sales double month-on-month in January

A ramp-up in new private home launches by developers in January, coupled with a low base of comparison in December, helped drive a rebound in local new private home sales, surging 108% month-on-month.

According to the latest flash estimates released by the Urban Redevelopment Authority (URA) on Thursday (15 February), developers sold 281 units in January this year, excluding Executive Condominiums (ECs). However, this marked a 28.5% decline compared to the same period last year.

Among these, the Outside Central Region (OCR), representing mass-market private homes, saw 144 units sold. The Rest of Central Region (RCR), representing mid-tier private homes, and the Core Central Region (CCR), representing prime luxury homes, logged sales of 112 units and 25 units respectively.

If ECs are included, total new home sales reached 588 units, up 286.8% month-on-month and 6.5% year-on-year.

Developers Launched 417 New Private Homes in January

Developers launched 417 new private residential units in January this year, significantly higher than the 36 units rolled out in December. Year-on-year, the number of new units launched inched up by 1.7%.

Three new projects made their debut last month: the EC project Lumina Grand, Hillhaven, and The Arcady at Boon Keng. Together, these three developments accounted for 65% of total sales in January.

The top-selling project in January was Lumina Grand, which moved 271 units at a median price of $1,525 psf.

The 108% month-on-month jump in new private home sales in January was partly due to the low base of comparison in December last year.

Economic Softness, Subdued Sentiment Weigh on Sales; Down 29% Year-on-Year

The 29% year-on-year decline in new private home sales was primarily driven by economic headwinds, subdued buyer sentiment, and mounting buyer resistance to elevated price points. This resulted in lukewarm demand and lower take-up rates for new launches in January. Hillhaven and The Arcady at Boon Keng both saw launch-weekend take-up rates of under 30%.

With private home prices peaking, interest rates remaining elevated, new home sales dipping to a 15-year low last year, and prevailing cooling measures still in force, it is unsurprising that buyers are adopting a cautious, wait-and-see stance.

Looking ahead, given the absence of major project launches and the seasonal lull during the Chinese New Year festivities, new private home sales in February are expected to drop month-on-month, with volumes projected to hover between 150 and 200 units.

However, new launches slated for the first quarter of this year—such as Sora, Lentor Mansion, The Hill @ One-North, and Marina View Residences—are expected to prop up sales volumes in March.