The lack of major new project launches continued to weigh on new private home sales in February. Developers sold 527 new private homes (excluding Executive Condominiums, ECs) last month, a 22.5% decline from the 680 units transacted in January 2022. This marks the slowest monthly new home sales since May 2020, when 487 units were sold. Compared to the 645 units sold in February 2021, sales were down by 18.3% year-on-year.
The only new project launched in February was the 32-unit Royal Hallmark on Haig Road, which sold 10 units at a median price of S$1,905 per square foot (psf). Developers released 194 units (excluding ECs) for sale in February, an increase of nearly 9% from the 178 units placed on the market in January.
New private home sales are often largely driven by the new projects launched during the month. Given the lack of new launches, the soft sales in January and February were not surprising. Additionally, other factors pressuring sales included the seasonal lull due to the Chinese New Year holidays and the market still digesting the impact of the December 2021 cooling measures. The Rest of Central Region (RCR) accounted for slightly more than half of the sales in February, with 266 transactions making up 50.5% of the monthly total. In the RCR, Normanton Park sold 85 units at a median price of S$1,855 psf.
Meanwhile, 160 new private homes were transacted in the Outside Central Region (OCR). Dairy Farm Residences became the best-selling project in the OCR with 32 transactions at a median price of S$1,716 psf. The OCR sales volume in February 2022 was the lowest monthly figure for this market segment since the 98 units sold during the circuit breaker period in April 2020.
New private home sales in the Core Central Region (CCR) fell to a one-year low, with only 101 units sold in February 2022. Leedon Green was the most popular CCR project for the month, selling 14 units at a median price of S$2,838 psf. The cooling measures introduced in December 2021 may have weighed on sales in the CCR, as this segment tends to attract foreigners and multiple-property owners, who are more severely affected by the higher Additional Buyer’s Stamp Duty (ABSD) rates.
Although demand from foreigners and property investors was expected to weaken due to the hike in ABSD rates in December 2021, the proportion of foreign buyers saw a slight increase in February 2022. Based on Realis caveats, foreigners accounted for 4.9% of new private home sales in February 2022.
Meanwhile, Singaporeans and Permanent Residents (PRs) purchased 79.3% and 15.6% of the new private homes sold in February 2022, respectively. The proportion of local citizens buying new private homes in February declined from 86% the previous month, as many buyers may be observing market movements and waiting for more new private home launches (see Table 1).
According to caveats lodged, about 62% of non-landed new private homes transacted in February 2022 were priced below S$2 million (see Chart 1), higher than the 57% in January. This suggests that a growing number of buyers are purchasing relatively affordable units in the mass market and city fringe, possibly mindful of the rising interest rate environment and modest home sizes. The median transacted price for new private homes in February was S$1.8 million, lower than January’s S$2.0 million. Transactions for the newly launched strata landed project, Belgravia Ace, in January likely supported values at that time. The majority of transactions under S$2 million comprised homes in the RCR (49.7%), followed by the OCR (37.2%) and a minority in the CCR (13.1%).
Due to the limited number of new launches, buyers are picking up units from previously launched projects. The unsold new private home inventory has fallen to a new low of 14,154 units as of the end of Q4 2021, which may indicate that potential buyers have a fairly limited selection of units to choose from. Consequently, some buyers might decide to enter the market only after more projects are launched in the coming months.
Market Outlook
Top-Selling New Private Condos in February 2022 (Excluding ECs)
| Project | Region | Units Sold (Feb) | Median Price (S$/psf) (Feb) |
|---|---|---|---|
| Normanton Park | RCR | 85 | $1,855 |
| Avenue South Residence | RCR | 32 | $2,371 |
| Dairy Farm Residences | OCR | 32 | $1,716 |
| The Florence Residences | OCR | 26 | $1,710 |
| Verdale | RCR | 20 | $1,825 |
| One Pearl Bank | RCR | 19 | $2,334 |
| Midwood | OCR | 16 | $1,730 |
| Leedon Green | CCR | 14 | $2,838 |
| Fourth Avenue Residences | CCR | 13 | $2,469 |
| Kopar at Newton | CCR | 13 | $2,429 |
| Forett at Bukit Timah | RCR | 12 | $2,104 |
| Kent Ridge Hill Residences | RCR | 11 | $1,840 |
So far, AnjiaSG has not observed any signs of the Russia-Ukraine conflict significantly weakening buyer confidence. Given the stock market’s volatility and uncertainty, some investors may decide to purchase residential properties to protect their capital and hedge against inflation, as real estate is often considered a more defensive asset.
Veteran local property agent Leo Kwek anticipates that new private home sales will remain subdued in March in the absence of any new project launches. In the second quarter of 2022, home sales should pick up as developers bring more projects to the market. Several new projects are expected to launch in Q2 2022, including The Arden, North Gaia EC, Piccadilly Grand, and Liv@MB.
These upcoming launches may also help to spur buying interest in existing projects. When more new projects are available, potential buyers can compare various projects and prices, and some may ultimately purchase units from existing projects that they perceive as offering better value for money.
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