Tepid Demand for Year's First Two New Private Home Launches? Sales May Pick Up Post-CNY

The first two new private residential projects to kick off the year each sold over 50 units over their launch weekend, representing only about 30% of total or released units and highlighting subdued buying sentiment.

With buyers becoming increasingly price-sensitive and discerning, the pace of new private home sales got off to a slow start this year. Market watchers believe that market activity could pick up noticeably after the Chinese New Year in February.

Hillhaven, a 341-unit 99-year leasehold project near Hillview MRT station, and The Arcady at Boon Keng, a 172-unit freehold development along Serangoon Road, were launched for sale on Saturday (20 January).

According to developer figures, Hillhaven sold 59 of the 179 units released on its launch day, translating to a 33% take-up rate, with prices starting from $1,903 psf.

Meanwhile, The Arcady at Boon Keng moved 51 units, accounting for nearly 30% of the entire development. Prices started from just under $2,400 psf, with one- and two-bedroom units making up the bulk of sales.

Hillhaven is jointly developed by Sekisui House and Far East Organization, while The Arcady at Boon Keng is jointly developed by KSH Holdings, SLB Development, and Ho Lee Group.

A statement issued by Far East Organization noted that all buyers at Hillhaven were Singapore Citizens and Permanent Residents, with buyers aged between 30 and 50 accounting for 70%.

Following the seasonal lull in December and softer developer sales last year, the market requires more time to regain momentum. Ismail Gafoor was not surprised by the sales performance of these projects, considering the results "encouraging" instead.

Overall, buying sentiment may remain somewhat cautious at the start of the new year, as prospective buyers take their time to evaluate the market and weigh their options. Buyers appear to remain price-sensitive, highly selective regarding the properties they wish to purchase, and in no hurry to commit.

Sales momentum for new private homes has started slowly this year, and the pace is only expected to pick up once buyers gain a firmer grasp of market conditions.

Mixed Launch Performances for New Private Residential Projects Last Year

Following the latest round of property cooling measures introduced by the government last April, new private residential launches saw uneven performances last year, with some enjoying blockbuster opening weekends while others met with lukewarm responses.

For instance, Blossoms by the Park (275 units), the first new private home launch after the cooling measures took effect, sold 198 units or 72% on its launch day. Grand Dunman, a 99-year leasehold project along Dunman Road, sold 550 units over its launch weekend last July—representing about 55% of its 1,008 units—marking the best launch weekend performance in more than two years since Normanton Park.

In contrast, TMW Maxwell, a 99-year leasehold mixed-use development in Tanjong Pagar, sold just seven units over its launch weekend last August, accounting for less than 3% of its total 324 units.

With more new private residential projects slated to enter the market, buyers have adopted a cautious wait-and-see stance, preferring to compare available developments before making a decision.

Furthermore, one- and two-bedroom units remain popular with both investors and owner-occupiers. A relatively limited supply of such units among this year's new launches has also weighed on overall sales numbers. For instance, all 11 one-bedroom-plus-study units at The Arcady at Boon Keng were fully snapped up on the first day of launch.

Four Projects Slated to Launch Around Chinese New Year

Beyond Hillhaven and The Arcady at Boon Keng, four new developments are expected to roll out over the month spanning the Chinese New Year period, injecting 978 units into the market.

Lumina Grand, a 512-unit executive condominium (EC) along Yuan Ching Road, is currently open for preview and will officially launch for sale on Saturday (27 January).

Projects slated to launch after Chinese New Year include Lentoria in Lentor (267 units), The Hillshore in Pasir Panjang (59 units), and The Hill @ One-North in one-north (140 units).