New private home sales hit one-year high with 1,038 units sold in May
New home sales in Singapore skyrocketed to a near three-year high in May, achieving 1,038 units excluding executive condominiums (ECs). This came as developers launched 1,595 new residential units for sale, nearly double the April figure. It is the highest monthly launch since November 2021.
Led by The Reserve Residences and The Continuum, both located in the Rest of Central Region (RCR), 523 and 225 units were sold in May respectively, with the median prices of $2,461 psf and $2,720 psf. Singaporeans and permanent residents (PRs) made up 85.5% and 11.1% of total transactions, demonstrating a robust local demand.
However, despite the overall robust figure, sales by foreign buyers decreased noticeably, making up only 3.5% compared to 8% in April. The decline attributed to the double of Additional Buyer’s Stamp Duty (ABSD) to 60%, according to Lam Chern Woon, head of research and consulting at Edmund Tie.
In the Core Central Region (CCR), 152 units were sold, representing a 26.9% fall month-on-month (m-o-m). The top-selling projects included The Atelier with 22 units sold at a median price of $2,685 psf, and Pullman Residences Newtown with 16 units sold at a median price of $3,278 psf.
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On the other hand, Outside Central Region (OCR) clocked in at 39 units, recording a 23.5% decline m-o-m. PropNex’s Wong noted that the figure was the lowest proportion chalked up by foreign buyers since December 2021, indicating a tight supply of unsold stock.
Moving forward, developers will launch at least five projects this July including Altura, an executive condominium located in Bukit Batok. Knight Frank’s Leonard Tay believes that local demand will continue to drive demand, however, foreign homebuyers are likely to remain in a wait-and-see position due to the new cooling measures. Knight Frank is expecting developers’ new home sales to come in between 7,000 to 8,000 units for the full year.
Demand for new private homes in Singapore remains buoyant, supported by strong local buyers’ preferences and new projects launching in the next few months. Despite new cooling measures, market sentiment remains positive as developers are optimistically expecting sales to pick up in July.