Sales of new homes in Singapore in February 2023 increased from the previous month, though it was down from the same period in the previous year. Developers sold 432 new homes excluding executive condominiums (ECs), a rise of 9.9% from the figure of 393 in January. In comparison, this number fell 20.3% from February 2022 sales and was 28% lower than the five-year average for the month.

Christine Sun, Senior Vice President of Research & Analytics at OrangeTee & Tie, suggested that the increase may be due to buyers waiting for more project launches in the coming months and holding back to monitor the market. The month saw 401 new homes released, a number matching January sales.

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The two main new launches in February were Terra Hill, a 270-unit freehold project by Hoi Hup and Sunway Developments on Yew Siang Road; and Gems Ville, a 24-unit freehold boutique development along Lorong 13 Geylang. These accounted for 22% and 1%, respectively, of new home sales in the month.

Most sales activity was in the Core Central Region (CCR), which accounted for 51.4% of February developer sales. This marked a 40.5% increase on the previous month, and was driven by projects such as Pullman Residences Newton, Jervois Prive and Leedon Green, according to JLL’s Chia Siew Chuin. Meanwhile, seven of the ten most successful projects in February were CCR freeholds, with Pullman Residences Newton moving 38 units at a median price of $3,171 psf and Leedon Green selling 21 units at a median price of $2,943 psf.

The number of new homes purchased by foreigners also remained stable in February, as 54 new homes were acquired by non-permanent residents. This was the highest monthly sales to foreigners since June 2022, according to OrangeTee & Tie’s Sun.

Overall, the February figures point to a stable market, notes Leonard Tay, Head of Research at Knight Frank Singapore. Following successful launches of The Botany at Dairy Farm and Terra Hill, “buyers are prepared to pay for new homes despite the present pessimism,” he said.

Developers are scheduled to launch more new projects in March and upcoming launches for the next two months include EL Development’s Blossoms by the Park at Slim Barracks Rise, Tembusu Grand at Jalan Tembusu by City Developments and MCL Land, Hoi Hup and Sunway Developments’ The Continuum at Thiam Siew Avenue, and The Reserve Residences at Jalan Anak Bukit by the joint venture between Far East Organization and Sino Group.

Analysts have maintained their full-year forecasts of 7,000 to 9,000 units, a sign that developers are buoying buyer confidence amidst the COVID-19 downturn. With the higher BSD rates announced in the Budget unlikely to deter buyers, Singapore’s new home market offers many opportunities for investors, homebuyers and developers alike.

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