New Private Home Sales Rebound in March | Ohmyhome Insights

Every month, The Urban Redevelopment Authority (URA) releases a comprehensive database of developer sales for private new homes. Ohmyhome analyses this huge chunk of data and picks out the most relevant points and trends for readers.  

Despite a lack of new project launches, new private home sales rebounded by 20.7% (m-o-m) in March. Developers sold a total of 654 units (excluding ECs) in March, as compared to the 542 units transacted in February.

This is likely due to buyers and investors returning after the Chinese New Year festivities, as well as the improving market sentiment due to the relaxation of the safe management measures. For instance, there are now more allowances to the number of visitors to the show flat galleries as well.

Sales rose across all the market segments. With the Core Central Region (CCR) seeing the highest increase, with a 39.1% (m-o-m) rise in the number of transactions in March. The number of units transacted increased from 110 units sold in February to 153 units transacted in March.  

This is due to more units launched in CCR, with a total of 154 units in March. And this was the highest number of units launched in CCR, in the first 3 months of the year. This likely provided buyers with more options to consider in the segment.

Past projects attributed to the bulk of sales

Given the recent paucity of new launches, March’s best-selling projects were developments that were previously launched. Developers launched a total of 309 units, with no new EC units launched. These past projects formed the bulk of sales in March. 

With the top selling project for the month of March once again being Normanton Park. The project transacted a total of 83 units at a median price of $1,887 psf. 93.9% of the total units in the development have been transacted so far.

It is worth noting that most of the mega developments that are currently in the market, are nearing their sold-out status. Most projects that are 1,000 units and above are close to its sold-out status and there are no such future developments in the immediate pipeline. Hence, we are unlikely to see such developments coming onstream anytime soon. This in turn, lowers the number of units available for launch in the pipeline as well.  

Significant drop in new home sales by foreigners 

Based on the numbers retrieved from URA Realis, private new home units purchased by foreigners dropped significantly from 155 units in 4Q2021 to 81 units in 1Q2022.  A considerable 47.7% (q-o-q) reduction in the number of private home sales. 

Higher ABSD (additional buyer’s stamp duty) rates for foreign buyers and investors have led to this decline. Foreigners are taking a cautious approach in assessing the viable options in the market, with the lack of new project launches. And some foreigners may have shifted their interest towards the rental market as well.  

Outlook

The number of new home sales were 1,880 units in the first quarter of 2022 as compared to the 3,018 units sold in 4Q21. This translates to a 37.7% decline (q-o-q).

This can be attributed to the cooling measures in place, absence of major new project launches, depleting number of unsold units, global uncertainties from the Russia-Ukraine conflict and rising interest rates.

With new launches coming onstream and the relaxation of safe management measures, we expect market sentiments for private home sales to remain positive in the upcoming months.

Recent tender results for government land sale sites, reflects general optimism among developers. Developers will likely be moving forward with their new project launches. With upcoming projects such as North Gaia (EC), Piccadilly Grand, The Arden and Liv @ MB coming on stream.

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