New private residential units sold in January jump after December dip, still down 42.8% year on year

Feb 15, 2023

SALES of new private residential units in January made a strong recovery from the low volumes in December last year, with volume partly driven by returning demand from Chinese buyers.

Urban Redevelopment Authority (URA) data released on Wednesday (Feb 15) showed that the total number of new private residential units sold in January was 391, boosted by the launch of Sceneca Residence, which moved 157 units. January’s numbers were a 130 per cent increase from December’s volume of 170 units.

Year on year, however, developer sales volume in January was still down 42.8 per cent from the 684 new units sold in the same month in 2022.

“The good sales take-up shows a pent-up demand for housing units, especially in the suburbs, where supply remains tight,” said Christine Sun, senior vice-president of research and analytics at OrangeTee. She noted that the healthy volume also came despite the rise in mortgage rates and implementing of cooling measures in September 2022.

“We expect more foreign buyers and permanent residents to return to Singapore’s property market, especially with the reopening of China’s international borders,” she added.

Echoing her point, Huttons senior director of research Lee Sze Teck said: “This could be the year in which the luxury market sees more high-profile deals with the return of the super-wealthy Chinese.”

“This may not be fully reflected in the caveats, as it is not compulsory to lodge a caveat. Some of these deals may have a different deal structure or be purchased under a non-China passport.”



The number of new units launched for sale rebounded to 410 in January, said Chia Siew Chuin, head of residential research at JLL, as developers returned to the scene after sitting out the market since September. The tally was the highest level in the four months since the 913 units launched last September, when lending curbs were tightened. January’s launches were up 130.3 per cent from January 2022, which followed the December 2021 measures, she said.

Chia pointed out however that while the latest data showed a steady market in primary sales, total resale transactions of private homes continued to fall, by 30.2 per cent from 755 units last December to 527 units in January.

The median transacted price of new private homes excluding executive condominiums (ECs) also fell, to S$1.9 million in January – down from nearly S$2.4 million in the previous month, said Wong Siew Ying, head of research and content at PropNex Realty. She added that the higher sales volume in the Outside Central Region (OCR) likely helped to lower the overall median price.

On a per square foot basis, the median price in the Core Central Region (CCR) inched up 0.1 per cent month on month to S$2,896 in January, while the OCR median rose 1.3 per cent to S$2,083 psf. In the Rest of Central Region (RCR), meanwhile, the median price fell 2.5 per cent to S$2,587 psf.



News of higher stamp duties announced in Budget 2023 on Tuesday were deemed “unlikely to dent the attractiveness of Singapore’s residential properties in the eyes of buyers”, said Lee.

“Foreigners are likely to view the increase in property tax as a transaction cost and a safe-haven premium on properties in Singapore,” said Lee.

OrangeTee’s Sun noted that the number of new condo units (excluding EC units) bought by foreign buyers continued to rise after last September’s cooling measures, from 43 units that month to 56 units in January.

Units sold to foreign buyers in January also topped the 36 sales inked in December and were above the monthly average of 43 new condo units transacted between January 2022 and August 2022 – before the latest cooling measures kicked in.

Out of total new condo sales (excluding ECs), foreigners’ purchases surged from 4.6 per cent in September to 14.4 per cent in January 2023, surpassing the monthly average of 7.2 per cent from January 2022 to August 2022, OrangeTee’s analysis showed.

The share of Singaporean purchases, in contrast, fell from 87.2 per cent in September to 70.6 per cent in January.

The best-selling projects in January, including ECs, were Sceneca Residence (launched last month), Tenet, Leedon Green, Klimt Cairnhill, One Holland Village Residences, Riviere, Haus on Handy and Perfect Ten.

Huttons’ Lee said “super-wealthy Chinese” were reported to be behind some of the purchases in Klimt Cairnhill in January, when 14 out of the 17 units sold were bought by foreigners, and 15 units were large apartments of above 2,000 square feet (sq ft) in size.

High-value units continued to sell in January. Sun noted that 26 new non-landed homes sold for at least S$5 million last month, and two units transacted at over S$10 million. These were a 4,661 sq ft unit at Dalvey Haus sold at S$16.28 million or S$3,493 per sq ft, and a 3,272 sq ft unit at Midtown Modern, which sold for S$14 million or S$4,278 per sq ft.

Excluding ECs, sales in the OCR made up the bulk of transactions last month – 185 units or 47.3 per cent of new unit sales. Another 40 per cent of sales or 158 units came from the CCR, and the remaining 12.3 per cent or 48 units were in the RCR.

Including ECs, new home sales fell 13.8 per cent to 550 units in January 2023, from 638 units in the preceding month when the launch of Tenet lifted sales.

Prices are forecast to rise by between 3 and 8 per cent, slower than last year, even as new launches pick up later in 2023. Volume of new home sales is expected to hit about 8,000 units this year.

Higher property prices could also come as developers pass on the higher costs of acquiring development land, given that buyer’s stamp duties have been raised, said Nicholas Mak, head of research and consultancy at ERA Realty.

https://www.businesstimes.com.sg/pro...-down-428-year