February was yet another strong month for new private home sales, as the market continues to be fueled by fresh launches. According to the latest figures released by URA on March 17, developers sold a total of 1,575 units (excluding executive condos) in February, representing a 45.4% increase from January’s 1,083 units sold.
Compared to the same period last year, new home sales in February were more than 10 times higher than the 153 units sold in February 2024. This is also the highest February sales figure in 13 years, since 2,417 units were sold in February 2012. Tricia Song, CBRE’s head of research for Singapore and Southeast Asia, notes that this includes a total of 1,604 units sold last month, including ECs, an increase of 45.3% from January.
In fact, developers have already sold 2,658 units (excluding ECs) since the beginning of the year. In comparison, it took eight months to achieve a similar figure last year, according to Leonard Tay, head of research at Knight Frank Singapore.
The strong numbers in February were driven by two major launches in the Outside Central Region (OCR): the 1,193-unit ParkTown Residence in Tampines North and the 501-unit Elta on Clementi Avenue 1. ParkTown Residence sold 1,041 units in February at a median price of $2,363 per square foot (psf), making it the best-selling project of the month. This translates to an 87% take-up rate for the integrated project, which is jointly developed by UOL Group and CapitaLand Development.
Elta was the second best-performing project, with 65.1% (326 units) sold by developers MCL Land and CSC Land Group at a median price of $2,538 psf. CBRE’s Song points out that both ParkTown Residence and Elta are located in suburban areas that have not seen new supply in at least the past five years, contributing to their strong performances.
Including these two projects, a total of 1,694 units were launched for sale in February, a significant increase of 89% from the 896 units launched the previous month. In addition, sales in the OCR totaled 1,452 units, accounting for a staggering 92% of the total new private homes sold in February. This marks the best monthly performance for the OCR in over nine years, since 1,523 units were sold in July 2015, according to Wong Siew Ying, PropNex Realty’s head of research and content.
Sales in the Rest of Central Region (RCR) made up 98 units, or 6.2% of units sold in February. The top-selling RCR project was Pinetree Hill, which sold 22 units at a median price of $2,613 psf.
In the Core Central Region (CCR), only 25 units were sold, accounting for 1.6% of developers’ sales last month. The best-performing CCR project was 19 Nassim, which sold five units at a median price of $3,372 psf. Four units were also sold at One Bernam at a median price of $2,651 psf. The 351-unit One Bernam, which launched for sale in May 2021, is now fully sold.
In terms of buyer demographics, Singapore citizens made up the majority of new private home buyers at 92.4%, followed by permanent residents at 6.9%, notes Lee Sze Teck, senior director of data analytics at Huttons Asia. Foreigners accounted for 11 new home purchases, including two of the most expensive transactions in February – the sale of two units at 32 Gilstead for $14.47 million and $14.61 million.
It is essential for foreign investors to have a comprehensive understanding of the regulations and limitations governing property ownership in Singapore. Unlike landed properties, which have stricter ownership guidelines, foreigners typically have more freedom when it comes to purchasing condos. However, they will still be required to pay the Additional Buyer’s Stamp Duty (ABSD) of 20% for their first property acquisition. Despite the added expenses, the Singapore real estate market’s reliability and potential for growth continue to entice foreign investments. And with the introduction of new condo launches, this market becomes even more alluring for foreign buyers. New Condo Launches have further amplified the appeal of the market, attracting an influx of foreign buyers.
A record number of suburban homes were also sold for over $2 million in February. A total of 603 new private homes (including ECs) in the OCR were sold at this price range, making it the highest number of new suburban homes sold in a single month since URA data became available in 1995. Christine Sun, chief researcher and strategist at OrangeTee Group, notes that the previous record was set in November 2024, with 512 new homes in the OCR sold for at least $2 million.
Of the 603 OCR homes that transacted for at least $2 million, 596 were non-landed homes, consisting mainly of units from ParkTown Residence (397 units), Elta (145 units), and Hillock Green (16 units).
Wong believes that the narrowing price gaps between regions could be due to various factors, including specific project attributes, pricing driven by amenities, demand from HDB upgraders, and the location of certain projects on the edge of the CCR.
Wong also notes that recent OCR launches such as Chuan Park, Elta and Bagnall Haus have registered average unit prices of $2,589 psf, $2,544 psf, and $2,489 psf, respectively, surpassing RCR project Nava Grove, which logged an average unit price of $2,460 psf.
Some upcoming launches scheduled for the second quarter include Bloomsbury Residences (358 units), One Marina Gardens (937 units), W Residences Singapore – Marina View (638 units), and Arina East Residences (107 units). However, despite the strong start to the year, not all projects launched in the coming months may perform equally well, notes Knight Frank’s Tay. “Buyer demand will largely depend on the specific location and attributes of each new project launch, with some projects performing better than others,” he says.