February 2024 - New Private Home Sales
Fewer new homes were sold in February due to the Chinese New Year holidays. In light of the festivity, some projects had launched for preview in February, allowing buyers more time to consider their options and pushing back their booking dates to March.
A total of 45 new homes, excluding Executive Condominiums (ECs), were launched in February, compared to 417 units in January. This marked an 89.2% month-on-month (m-o-m) decrease.
Correspondingly, the number of units sold, excluding ECs, fell by 47.3% m-o-m to 148 units in the same month. Including ECs, a total of 183 new homes were sold in February, down from the 281 new homes sold in January.
Some developers have chosen to open for booking in March. Even though Lentoria and Lentor Mansion launched for preview, they only opened for booking in March. Similarly, Lumina Grand reopened for second-timer booking in March. March could see a better new home sales volume.
Top Performing Projects in February
Two EC projects, Lumina Grand and North Gaia, made it to the top five performing projects in February.
Lumina Grand emerged as the top-selling project in February, selling 16 units at a median price of $1,497. This was followed by The Botany at Dairy Farm and North Gaia, which sold 15 and 14 units respectively. The Botany at Dairy Farm achieved a median price of $2,018 per square foot (psf).
Next, Blossoms by the Park, Pinetree Hill, and Grand Dunman tied for fourth position, with each project selling ten units respectively in February.
Table 1: Top five best performing developments in February 2024
Source: URA as at 15 Mar 2024, ERA Research and Market Intelligence
Buyer Profile
Chart 1: Buyer profile for new homes excluding ECs
Singaporeans made up the majority of new home buyers (83.1%) in February 2024. Foreign buyers continue to stay away from the new home segment after the punitive Additional Buyer Stamp Duty (ABSD) hike in April 2023.
February 2024 also recorded only three transactions by foreigners, the lowest in the past 12 months. They were a 3,035 sqft unit at Terra Hill (RCR) for $8.05 million, a 1,087 sqft unit at Enchante (CCR) for $3.03 million, and a 1,464 sqft unit at Pasir Ris 8 (OCR) for $2.57 million.
Luxury properties (non-landed home $5 mil and above)
Eight luxury new homes were sold in February 2024. Of these eight units, six were purchased by Singapore Permanent Residents (SPRs), one by a Singaporean, and another by a foreigner. These eight units were located at Terra Hill (3 units), Watten House (2 units), Klimt Cairnhill, Enchante, and 19 Nassim (1 unit each).
The highest transacted property was a 3,035 sqft unit at Terra Hill for $8.05 million, which was purchased by a foreigner. Additionally, two SPRs bought a 1,851 sqft unit each at Watten House for $6.30 million and $6.15 million, respectively.
Chart 2: Buyer profile for home $5mil and more
Better new home sales are expected in March
March's new home sales are poised to improve as Lentoria, Ardor Residences, and Lentor Mansion opened for booking during the month. Additionally, Lumina Grand also reopened for second-timer bookings in March.
Buyers remain prudent and are sensitive to overall price quantum, particularly with higher interest rates. The initial forecast of rate cuts may be further delayed into the year, given the persistent high inflation rate in the US. However, a return of buyer interest could be anticipated once the rate cuts are implemented in the later part of the year.
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