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Singapore new private home sales more than double in January after resumption of launches

The sales volume was, however, the lowest seen in January in 15 years, according to property analysts.

Singapore new private home sales more than double in January after resumption of launches

A view of private residential properties near Orchard Road in Singapore on Apr 13, 2023. (File photo: Reuters/Caroline Chia)

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SINGAPORE: New private home sales in Singapore more than doubled in January from a month earlier after the resumption of property launches.

Excluding executive condominiums (ECs), developers sold 281 units last month, data released by the Urban Redevelopment Authority (URA) on Thursday (Feb 15) showed.

This was 108.1 per cent more than the 135 units sold in December, when sales sank to a near-15-year low.

On a year-on-year basis, however, new private home sales fell 28.7 per cent from the 394 units sold in January 2023.

Property analysts said that the sales volume was in fact the lowest seen in January in 15 years.

"Despite the rebound in sales volume, this is the lowest January sales since 2009, reflecting the tentative sentiments among buyers," said Huttons Asia's senior director for research Lee Sze Teck.

Just 108 units were sold in January 2009 amid the global financial crisis.

Of the units sold last month, 25 were in the Core Central Region (CCR), 112 were in the Rest of Central Region (RCR) and 144 were in the Outside Central Region (OCR).

A total of 417 units were launched for sale last month excluding ECs, with five in the CCR, 172 in the RCR and 240 in the OCR.

RESUMPTION OF PROPERTY LAUNCHES

Analysts attributed the month-on-month increase in sales in January to the resumption of property launches after the year-end holidays.

"Developers launched two major non-landed projects, Hillhaven and The Arcady at Boon Keng for sale in January 2024 which bumped up the number of launched units to 417," Mr Lee said.

"This is more than 11 times the units launched for sale in December 2023 and almost similar to a year ago."

Just 36 new units were launched for sale last month – the second-lowest number seen since URA began releasing monthly data on launches and sales in July 2007.

Units at Hillhaven and The Arcady at Boon Keng collectively accounted for close to 40 per cent of January's sales, with 111 units sold, said Ms Chia Siew Chuin, the head of residential research at JLL.

It was, however, "a lacklustre start to the year", with last month's sales representing "the weakest January showing in 15 years" she added.

"Soft macroeconomic conditions continue to hamper buyer sentiment, which is further exacerbated by lofty prices, elevated interest rates and market cooling measures," she said.

"Primary sales were also limited as most developers chose to hold off on launching new projects in the seasonally slow period preceding the Chinese New Year holidays."

According to ERA Singapore key executive officer Eugene Lim, Singaporeans made up 87.7 per cent of new home purchasers in January.

OUTLOOK

Looking ahead, sales are likely to dip in February "due to the absence of sales from major launches and the Chinese New Year period", Mr Lee said.

With several project launches coming up in the next two months, sales are then likely to surge again.

"Sales in March 2024 will rebound to around 400 to 600 units," Mr Lee said.

Among the projects slated to be launched in March and April are Ardor Residence, Arina East Residences, Koon Seng House, Lentoria, Lentor Mansion, The Hillshore and The Hill @ One-North.

"Barring unforeseen circumstances, developers may sell up to 7,000 new homes while prices are expected to be stable, increasing up to 5 per cent in 2024," Mr Lee added.

Despite the slow start to the year, "guarded optimism prevails for 2024, with expectations of a relatively resilient private home sales market", said Ms Chia.

"Buyer caution will persist into (the first half of 2024) due to market cooling measures, economic uncertainties, high interest rates and lofty prices," she said.

"Yet, while the stricter additional buyer's stamp duty measures will continue to deter foreign buyers and investors, the current market continues to exhibit traction, where buying momentum remains driven by genuine local buyers who are looking to buy a home for owner occupancy."

Ms Chia projected new private home sales volume for 2024 to be in the region of 7,000 to 8,000 units, with a 3 per cent to 5 per cent increase in prices.

"The favourable combination of low unemployment, ample market liquidity and anticipated improvements in the economic and interest rate environment in (the second half of 2024) are expected to bolster buyers' confidence," she said.

"Past trends also suggest that market slowdowns can swiftly rebound, leading to a resurgence in home sales and price growth when the external environment improves."

Source: CNA/fh(kg)

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