New project launches drive developers' April new home sales to 887 units, up 80% month-on-month

Developers Sell 887 New Private Homes in April

According to data released by the Urban Redevelopment Authority (URA) on 15 May (excluding Executive Condominiums, or ECs), monthly sales surged by 80.3% month-on-month and 37% year-on-year. This also marks the fourth consecutive month of growth and the highest monthly sales volume since September 2022, when 987 new private homes were sold.

The higher sales were driven by two major project launches last month in the Rest of Central Region (RCR) — the 638-unit Tembusu Grand and the 275-unit Blossoms by the Park developed by EL Development along Slim Barracks Rise.

Tembusu Grand was launched on 8 April and sold 354 units — more than half of its total units — at a median price of $2,463 psf last month. Blossoms by the Park was launched on 29 April and sold 205 units (74.5%) at a median price of $2,427 psf. The latter was the first project to launch immediately after the announcement of the latest property cooling measures that took effect on 27 April.

Together, these two projects accounted for 559 units or 63% of total sales in April. RCR projects made up the bulk of new private home sales last month, with 628 homes sold across the submarket. The 628 transactions in the RCR represent an 11-month high for the submarket (since 893 units were sold in May 2022).

Apart from Tembusu Grand and Blossoms by the Park, other top-selling RCR projects included Piccadilly Grand by CDL and MCL Land along Northumberland Road, which moved 14 units at a median price of $2,045 psf. In addition, the final 10 units at Frasers Property's Riviere along Jiak Kim Street were transacted at a median price of $2,954 psf.

In the Core Central Region (CCR), 208 new private homes were sold in April, accounting for 23% of total sales. The best-selling CCR project last month was The Atelier, Bukit Sembawang Estates' 120-unit freehold development along Makeway Avenue, where 46 units were sold at a median price of $2,658 psf. Leedon Green and Pullman Residences Newton followed closely, with each project moving 19 units at median prices of $2,838 psf and $3,215 psf, respectively.

New home sales in the CCR hit their highest level since August 2022, driven by an uptick in purchases by foreigners. In April, the number of new homes bought by foreign buyers nearly doubled to 70 transactions, marking the highest volume of such deals since May 2022. Geopolitical tensions may have spurred more foreign buyers to acquire properties in safe havens like Singapore.

The Outside Central Region (OCR) registered only 51 units sold in April — a 78% plunge month-on-month — primarily due to a lack of new launches and limited unsold inventory. Top performers in the region included The Botany at Dairy Farm (12 units at a median price of $2,087 psf) and The Gazania (10 units at a median price of $1,755 psf).

Impact of Cooling Measures

New projects launched since the cooling measures took effect — namely Blossoms by the Park and The Continuum, an 816-unit freehold condominium by Hoi Hup Realty and Sunway Developments along Thiam Siew Avenue — have managed to log healthy sales of over 200 units each. The Continuum was launched on 6 May and moved 206 units (27%) over its launch weekend at an average price of $2,732 psf.

Even with the Additional Buyer's Stamp Duty (ABSD) rate doubling to 60% for foreigners, 8 units at Blossoms by the Park were purchased by foreign buyers, alongside 1 unit at The Continuum. Overall, foreign buyers accounted for 8% of total sales in April, holding steady from the preceding month.

Nevertheless, foreign demand for new homes could moderate in the coming months as overseas buyers take time to assess the new measures. While it remains early days, the ABSD hike appears to be curbing foreign investment demand. In turn, this may lead to softer demand from foreign buyers, particularly in the CCR, which historically attracts greater foreign investor interest.

In contrast, foreign investor interest in Singapore's luxury property market remains resilient. There has been no significant drop-off in interest following the implementation of the cooling measures, with foreigners continuing to make viewing appointments for luxury homes.

Buyers remain drawn to Singapore's stable governance and resilient currency. For affluent foreign purchasers, their focus may ultimately rest on the total cost of ownership in Singapore property (including purchase price, Buyer's Stamp Duty, and ABSD), rather than solely on the headline ABSD rate.

In any case, new home sales in the month ahead are expected to remain anchored by buying demand from locals and Singapore Permanent Residents (PRs). New home sales in May 2023 should stay relatively healthy, buoyed by keen interest in the upcoming launch of The Reserve Residences (a 732-unit development by Far East Organization and Sino Group along Jalan Anak Bukit).