Tembusu Grand was the top-selling project in April (Picture: Samuel Isaac Chua/The Edge Singapore)
SINGAPORE (EDGEPROP) - In April, developers sold 887 new private homes (excluding executive condominiums or ECs), according to data released by URA on May 15. This represents a jump of 80.3% m-o-m and 37% y-o-y. The figure also marks a fourth consecutive month of growth and the highest monthly sales since September 2022 when 987 new private homes were sold.
The higher sales come off the back of two major launches in the Rest of Central Region (RCR) last month –– the 638-unit Tembusu Grand by City Developments Ltd (CDL) and MCL Land along Jalan Tembusu; and the 275-unit Blossoms by the Park by EL Development along Slim Barracks Rise.
Tembusu Grand, which launched for sale on April 8, moved 354 units (56%) at a median price of $2,463 psf last month. Blossoms by the Park, which launched for sale on April 29, sold 205 units (74.5%) at a median price of $2,427 psf. The latter project was the first sales launch following the announcement of the latest property cooling measures which took effect on April 27.
Together, the two projects accounted for 559 units or 63% of April’s sales. RCR projects made up the bulk of new private home sales last month, with a total of 628 homes sold in the region. “The 628 units transacted in the RCR is the highest monthly tally for this submarket in 11 months (since 893 units were sold in May 2022),” observes Wong Siew Ying, head of research and content at PropNex Realty.
Apart from Tembusu Grand and Blossoms by the Park, other RCR projects that were among those with the highest sales include CDL and MCL Land’s Piccadilly Grand on Northumberland Road, which moved 14 units at a median price of $2,045 psf. In addition, Riviere, a condo by Frasers Property on Jiak Kim Street, saw its last 10 units sold at a median price of $2,954 psf.
In the Core Central Region (CCR), 208 new private homes were sold in April, representing 23% of total sales. The top-selling CCR project last month was The Atelier, Bukit Sembawang Estates’ 120-unit freehold development on Makeway Avenue, where 46 units were sold at a median price of $2,658 psf. Leedon Green and Pullman Residences Newton followed, with 19 units sold at each project at a median price of $2,838 psf and $3,215 psf, respectively.
Lee Sze Teck, senior director of research at Huttons Asia, notes that the CCR new home sales are the highest since August 2022 and come on the back of more purchases by foreigners. In April, the number of foreign buyer purchases of new homes nearly doubled to 70, which is the highest number of such transactions since May 2022. “Geopolitical tensions may have led to more foreigners buying properties in safe havens like Singapore,” Lee adds.
The Outside Central Region (OCR) saw just 51 units sold in April — a drop of 78% m-o-m — underpinned by the absence of new launches and limited supply of unsold stock. Top-sellers in the region include The Botany at Dairy Farm (12 units sold at a median price of $2,087 psf) and The Gazania (10 units sold at a median price of $1,755 psf).
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Meanwhile, in the EC segment, 22 units were sold in April, on a par with the 21 units sold in March. Sales were led by North Gaia, with the Yishun EC moving 18 units at a median price of $1,271 psf.
PropNex’s Wong highlights that fresh project launches since the new cooling measures took effect — namely Blossoms by the Park and The Continuum, the 816-unit freehold condo by Hoi Hup Realty and Sunway Property on Thiam Siew Avenue — have been able to book healthy sales of over 200 units each. The Continuum, which launched on May 6, saw 206 units (27%) units sold during its launch weekend at an average price of $2,732 psf.
In addition, Wong points out that despite the doubling in additional buyer’s stamp duty (ABSD) rate applicable for foreigners to 60%, Blossoms by the Park saw eight units acquired by foreigners, while The Continuum saw one. Overall, foreign buyer purchases made up 8% of total sales in April, consistent with the month before.
Nonetheless, Wong says foreign demand for new homes could slow in the coming months, as foreigners assess the new measures. “It is still early days yet, but we think the ABSD rate hike appears to be taking effect in crimping foreign investment demand,” she adds. This, in turn, could result in a pullback in demand among foreigners especially in the CCR, which tends to see more foreign investment interest.
In contrast, Huttons’ Lee believes that foreign interest in luxury homes in Singapore remains robust. “Interest has not declined significantly after the cooling measures. Foreigners are still making appointments to view luxury homes,” he says.
Eugene Lim, key executive officer and head of research and market intelligence at ERA Realty Network, concurs, adding that buyers remain attracted to Singapore’s stable governance and strong currency. “For well-heeled foreign buyers, they may eventually just look at the total cost of property ownership in Singapore (which includes the property price, buyer’s stamp duty and ABSD) rather than just focusing on the high ABSD rate,” he opines.
In any case, new home sales in the coming month are expected to remain supported by home buying demand from locals and Singapore permanent residents. “New home sales in May 2023 should remain quite healthy, with the upcoming launch of The Reserve Residences (the 732-unit condo by Far East Organization and Sino Group at Jalan Anak Bukit) drawing keen interest,” predicts PropNex’s Wong.
Check out the latest listings near Tembusu Grand, Jalan Tembusu, Blossoms by the Park, Piccadilly Grand, Riviere, The Atelier, Leedon Green, Pullman Residences Newton, The Botany at Dairy Farm, North Gaia, The Gazania, The Continuum