Sales of new private homes in Singapore rose 17 percent in May to a 12-month high of 1,038 units, driven by a pair of project launches in the Rest of Central Region, according to data released by the Urban Redevelopment Authority on Thursday.
The latest figure, which excludes executive condominium sales, is the first monthly reading to surpass 1,000 units since May of last year, when the total reached 1,355. The upbeat report signals continued momentum after sales shot up 80 percent in April.
Two fresh launches in the city fringe accounted for about 72 percent of the city-state’s May sales, PropNex Realty said in a release. The Continuum, a project of Hoi Hup Realty and Sunway Developments in Geylang, moved 225 units at a median price of S$2,720 ($2,026) per square foot, while The Reserve Residences, a joint venture of Far East Organization and Sino Group in Bukit Timah, shifted 523 units at a median price of S$2,461 per square foot.
“Despite three rounds of cooling measures since December 2021, high home loan mortgage rates, slower economic growth outlook, and firm home prices, demand for new private residential launches has remained resilient,” said Wong Siew Ying, head of research and content at PropNex.
OCR Nearing Sellout
The Rest of Central Region continued to lead the Singapore market with 847 new homes sold, up 34.9 percent from April. Sales at The Continuum and The Reserve Residences made up 88 percent of the RCR total.
The Core Central Region, a proxy for luxury homebuyers, transacted 152 new homes, down nearly 27 percent from April levels. The top-selling CCR projects were Bukit Sembawang Estates’ The Atelier, which sold 22 units at a median price of S$2,685 per square foot, and EL Development’s Pullman Residences Newton, which moved 16 units at a median price of S$3,278 per square foot.
In the Outside Central Region, the best-selling project in May was once again Sim Lian Group’s The Botany at Dairy Farm, where 16 units sold at a median price of S$2,125 per square foot.
Overall sales in the OCR fell 23.5 percent from April to 39 units amid an absence of fresh projects and a tight supply of unsold stock. Out of the mass-market projects already launched for sale in the OCR, some 93 percent of the units in the developments have already been sold, PropNex said, citing URA data.
Foreign Buyers Fall Off
After April’s hike in additional buyer’s stamp duty for foreign buyers, the number of non-landed new homes purchased by non-permanent residents plunged from 69 units in April to 36 units last month, said Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.
The proportion of Singaporean buyers rose from 82 percent in April to 85.5 percent, the highest figure since last September’s 87.3 percent and up sharply from the past-year low of 66.5 percent in December.
“New home sales will likely drop in June due to a lack of project launches,” Sun said. “Thereafter, some high-profile projects are slated for launch in the coming months, including Lentor Hills Residences and Grand Dunman. Some developers may also bring forward their project launches before the lunar seventh month, which may boost new home sales.”
OrangeTee expects 7,000-8,000 new homes in total to be sold this year.