Developers sold 673 new private homes (excluding Executive Condominiums, ECs) in January 2022, a 3.5% increase from the 650 units transacted in the previous month. Given the limited number of new launches, the seasonal lull before the Lunar New Year, and the new property cooling measures introduced in December 2021, the sales performance in January is commendable and indicates good underlying demand in the market. Other bright spots include decent sales in the Rest of Central Region (RCR) and Outside Central Region (OCR), as well as the strong take-up rate for Belgravia Ace upon its launch. The sale of 77 units at Belgravia Ace at over S$4 million per unit reflects robust demand from Singaporeans and ample liquidity in the market.
Compared to the same period last year, new private home sales fell by 58.8% from the 1,633 units sold in January 2021. The significant year-on-year decline is due to more major project launches in January 2021, such as the 1,862-unit Normanton Park and the 429-unit The Reef At King’s Dock, which boosted sales at that time.
The RCR led sales in January 2022 with a total of 289 new units sold, as Normanton Park was the best-selling private residential project last month, selling 94 units (at a median price of S$1,841 psf). Due to the lack of new launches in the RCR, buyers purchased units from previously launched projects, including The Woodleigh Residences, Amber Park, Verdale, and CanningHill Piers, which effectively boosted RCR sales in January.
Following closely was the OCR, the only sub-market to see a month-on-month increase in sales in January 2022. Developers sold 275 new units in January, with the 77 units sold at the new launch Belgravia Ace, at a median price of S$1,080 psf, accounting for more than a quarter of OCR sales. According to caveats lodged with the real estate information system, buyers paid between S$4.1 million and S$4.6 million for homes at Belgravia Ace.
From December 2021 to January 2022, sales in the Core Central Region (CCR) decreased by 18.7%, with 109 units sold. This is the lowest monthly sales volume for the CCR since February 2021, when 58 units were sold. Fourth Avenue Residences was the best-selling CCR project in January 2022, selling 13 units at a median price of S$2,481 psf. The decline in CCR sales in January could be an early sign of the impact of the new cooling measures. In particular, the increase in the Additional Buyer’s Stamp Duty (ABSD) rates for foreign buyers and investors purchasing their second and subsequent residential properties may have dampened buying interest and investment demand from foreigners. The limited number of new launches in the CCR may also be a reason for the slower sales.
In terms of the number of units launched, developers released 178 new private homes (excluding ECs) to the market in January 2022, a 53.5% decrease from the 383 units launched in December 2021. This is the lowest launch volume since the 167 new units launched in February 2021. Only two new projects were officially launched in January 2022: Belgravia Ace, a 107-unit strata landed project in the OCR, and Ikigai, a 16-unit boutique development in the CCR.
According to caveats lodged with the Real Estate Information System (Realis), foreigners and Singapore Permanent Residents (PRs) accounted for 4.2% and 10% of new private home sales in January 2022, respectively. Meanwhile, Singapore citizens purchased 85.9% of the new private homes sold in January 2022, a slight increase from December 2021, when Singapore citizens made up 83% of new private home buyers (see Table 1). In the coming months, Singapore citizens are expected to make up the majority of home buyers, as demand from foreigners and property investors may slow due to the increased ABSD rates.
Based on caveats, about 56.8% of the non-landed new private homes transacted in January 2022 were priced below S$2 million (see Chart 1), which is lower than the 66.6% recorded in December. The majority of transactions below S$2 million comprised RCR homes (44.4%), followed by OCR homes (43.5%), while CCR homes accounted for a small portion (12.0%).
Singapore Property Market Outlook
Top-Selling New Private Homes in January 2022 (Excluding ECs)
| Project | Region | Jan Sales | Jan Median Price (S$/psf) |
|---|---|---|---|
| Normanton Park | Rest of Central Region (RCR) | 94 | $1,841 |
| Belgravia Ace | Outside Central Region (OCR) | 77 | $1,080 |
| The Woodleigh Residences | Rest of Central Region (RCR) | 34 | $2,158 |
| Dairy Farm Residences | Outside Central Region (OCR) | 32 | $1,684 |
| The Florence Residences | Outside Central Region (OCR) | 27 | $1,768 |
| Midwood | Outside Central Region (OCR) | 20 | $1,789 |
| Amber Park | Rest of Central Region (RCR) | 18 | $2,449 |
| CanningHill Piers | Rest of Central Region (RCR) | 16 | $2,888 |
| Verdale | Rest of Central Region (RCR) | 16 | $1,787 |
| Fourth Avenue Residences | Core Central Region (CCR) | 13 | $2,481 |
| Avenue South Residence | Rest of Central Region (RCR) | 13 | $2,312 |
| Kent Ridge Hill Residences | Rest of Central Region (RCR) | 13 | $1,858 |
| Sengkang Grand Residences | Outside Central Region (OCR) | 12 | $1,740 |
| Penrose | Rest of Central Region (RCR) | 12 | $1,695 |
| The Gazania | Outside Central Region (OCR) | 12 | $2,089 |
| Leedon Green | Core Central Region (CCR) | 12 | $2,770 |
Based on past trends, the sales performance in January 2022 offers some assurance that demand for new private homes may not have been severely hit by the recent property cooling measures. This is the highest January private home sales volume since 2014, with the exception of January 2021 (1,633 units; see Table 2), when sales were driven by the launch of the large-scale development Normanton Park. Looking ahead, sales should remain relatively stable. Leo Kwek from AnjiaSG anticipates that developer sales will not see a significant spike, as the number of upcoming new launches is limited and the projects are relatively small in scale. Royal Hallmark, a 32-unit project on Haig Road, may be launched at the end of February, while The Arden, a 105-unit project on Phoenix Road, may be launched in March. Meanwhile, North Gaia EC is also expected to launch for sale in March this year. Given the dwindling number of unsold new private homes in the RCR and OCR, these upcoming launches should generate interest from buyers.
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