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Business Times
16-06-2025
- Business
- Business Times
New private home sales in May lowest for 2025, but up 40% year on year
[SINGAPORE] With no new projects launched in May, developers in Singapore sold 312 private homes in the month, less than half the 663 units transacted in April. Still, the latest sales figure – which excludes executive condominiums (ECs) – was 39.9 per cent higher than the 223 units moved in May 2024, data released by the Urban Redevelopment Authority (URA) on Monday (Jun 16) showed. May's new home sales were the lowest monthly level recorded in the year thus far, amid the absence of new project launches and slower sales as the nation was preoccupied with the general election, said OrangeTee & Tie chief executive Justin Quek. In fact, it was the first month in 2025 that had no fresh projects put on the market, said Wong Siew Ying, PropNex head of research and content. 'The decline in new home sales in May is not unexpected, as fresh project launches tend to drive transactions each month,' she explained. Nicholas Mak, chief research officer at added that ongoing uncertainties in the economy and job market dampened private housing sales on both the demand and supply sides. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up 'Developers are waiting for a more favourable market condition to launch their residential projects, while homebuyers are waiting for choice project launches and lower prices,' he said. Including ECs, 336 units were sold in May with just 20 units launched, compared with 263 units sold and 238 units launched in the same month in 2024. In April this year, 759 units were sold and 1,344 units were launched. Nonetheless, the sales tally for the first five months of 2025 is around 4,350 units – more than double the 1,688 sold in the same period last year, said Mohan Sandrasegeran, SRI head of research and data analytics. 'The stronger performance (this year) underscores resilient buyer confidence and more compelling project offerings, even amid broader economic uncertainties and cautious sentiment,' he added. Quek noted interest picking up in the luxury market, with nine new non-landed homes sold for between S$5 million and S$10 million in May – up from the two units that transacted for the same price range in April. There were also three transactions worth more than S$10 million recorded in May, similar to the previous month, he said. The priciest deal was for a 4,489-square-foot (sq ft) unit at the freehold 21 Anderson condominium in District 10 – for which marketing began in April – at S$24 million or S$5,347 per square foot (psf). The other two units – spanning 4,209 sq ft and 4,219 sq ft – were in 32 Gilstead in District 11. Both changed hands for S$15.1 million or around S$3,600 psf. All three were bought by permanent residents, noted Lee Sze Teck, Huttons senior director of data analytics. Overall, the proportion of such buyers remained relatively low, accounting for 14.4 per cent of transactions valued at more than S$1.5 million. Singaporeans were behind 83.4 per cent of these purchases, and foreigners a mere 2.2 per cent. Slow sales to persist In June, market watchers expect primary sales to remain sluggish, with no major launches lined up amid the school holiday lull. The only launch is that of freehold Arina East Residences, which released a limited number of units for sale to invited clients in the first week of June. So far, just nine of its 107 units have been sold at a median price of S$2,982 psf, URA data showed. The uncertain macroeconomic landscape, stemming from global trade challenges posed by US tariff policies, may also prompt prospective buyers to be more cautious, added Quek of OrangeTee. 'On the other hand, interest rates have been moderating for the past few months, potentially drawing some investors back into the property market as mortgages become more affordable,' he said. 'Moderating interest rates may also help (public housing) upgraders better afford a private condo, assuming employment and real wages hold stable.' Huttons' Lee estimates that around 16 projects generating more than 7,800 homes may be launched for sale in the second half of this year. These include the 683-unit W Residences Marina View in District 1, the 343-unit LyndenWoods in District 5, and the 600-unit Otto Place EC in District 24. But Tricia Song, CBRE research head for Singapore and South-east Asia, believes that with most of these projects located in the Core Central and Rest of Central regions – which tend to see higher prices – the monthly sales tally is unlikely to surpass 1,000 units, as seen in previous quarters. The full-year figure may therefore come in at 7,000 to 8,000 units, signalling a slowdown in demand, she added. 'There is downside risk to this projection should economic conditions worsen significantly.' Prices may consequently rise 3 to 4 per cent for the year, thanks to a still-low unsold inventory and strong household balance sheets, she said. 'Growth momentum could plateau in the next few quarters on a weaker economic outlook.'
Straits Times
16-06-2025
- Business
- Straits Times
No new condo launches, cautious buyers send May new private home sales skidding
SINGAPORE - New private home sales tanked for a second straight month in May as developers held back new launches and buyers remained cautious amid an uncertain economic outlook pummelled by global trade frictions and geopolitical tensions. Excluding executive condominiums (ECs), new private home sales dropped to a mere 312 units from 663 units in April as new launched units plummeted to a mere 20 units from 1,344 units in April. But May's sales were still 39 per cent above the 223 units sold in May 2024. Including ECs, new home sales fell to 336 in May from 759 in April. No new EC units were launched in May. But May's sales still outperformed that of other months in the past three years when no new projects were launched, primarily because of lower interest rates, Mr Justin Quek, chief executive officer of OrangeTee & Tie, said. In fact, 4,350 private new home sales (excluding ECs ) were recorded in the first 5 months of 2025, anchored by robust sales at a few large suburban and city-fringe new launches in the first quarter. This is up from 1,688 units in the same period in 2024, prompting some analysts to anticipate a gradual rebound in the second half of 2025 as several major new projects are launched. 'May saw 39.3 per cent of new home sales transacted below $2 million,' ERA Singapore chief executive Marcus Chu noted. But investor interest in city-fringe projects – One Marina Gardens, Bloomsbury Residences in Media Circle, and The Hill @ One North – remained healthy, with 69 per cent of units sold at below $2 million in these three projects, he said. Excluding ECs, the biggest proportion of new private homes sold were in the $1 million to $1.5 million range, which is the sweet spot for one-bedroom buyers at One Marina Gardens and Bloomsbury Residences, real estate services firm CBRE noted. Developers' sales in the prime district remained tepid, with just 15 new units transacted in May, down from 17 in April. UOL and Singapore Land's 180-unit Watten House was the best performer in this submarket, moving four units at a median price of $3,255 per sq ft (psf) , PropNex said. In the EC segment, developers sold just 24 new units in May, down 75 per cent from 96 units moved in April. Top performers Novo Place EC and Lumina Grand EC shifted eight units each at median prices of $1,601 psf and $1,513 psf, respectively, PropNex's head of research and content, Wong Siew Ying said. As at end-May, there were just 38 units of unsold new ECs from launched projects on the market, according to Urban Redevelopment Authority data. Tight unsold stock bodes well for the upcoming 600-unit Otto Place EC in Plantation Close in Tengah, which is expected to be launched in July, she added. Tepid sales could persist in June as there are no major launches lined up during the June school holidays, apart from a private placement at the 107-unit Arina East Residences in Tanjong Rhu Road, Ms Wong said. This means limited units are released and those invited can indicate the unit they want during sales booking. 'The Singapore primary housing market is going to face further headwinds. The recent flare up in the Israel-Iran conflict and the end of the 90-day US tariffs pause on July 9 would heighten market risks,' Mr Nicholas Mak, chief research officer at property search portal noted. While developers may push back launches in the near term, there are a fair number of new projects ready to be launched in the second half of 2025, Ms Tricia Song, CBRE's head of research for Singapore and South-east Asia, said. 'With most of these located in the prime district and the city-fringe area, which tend to have higher price points, we are unlikely to see monthly new home sales of over 1,000 units seen in first quarter 2025,' she said. The upcoming pipeline features a diverse mix, from high-end branded residences and city-fringe freehold developments to well-situated EC projects in emerging townships. These include Arina Residences, the 348-unit The Robertson Opus in Unity Street, the 347-unit The Sen in Upper Bukit Timah, the 941-unit Springleaf Residence in Yishun and the 524-unit River Green in River Valley. Join ST's WhatsApp Channel and get the latest news and must-reads.
Business Times
16-06-2025
- Business
- Business Times
New private home sales lowest for the year in May, but up 40% year on year
[SINGAPORE] With no new projects launched in May, developers in Singapore sold 312 private homes in the month, less than half the 663 units sold in April. Still, the latest May sales figure – which excludes executive condominiums (ECs) – was 39.9 per cent higher than the 223 units moved in the same month a year earlier, data released by the Urban Redevelopment Authority (URA) showed on Monday (Jun 16). May's new home sales were the lowest level recorded in the year thus far, in the absence of new project launches and slower sales with the nation preoccupied with a general election during the month, said OrangeTee & Tie chief executive Justin Quek. In fact, this was the first month in 2025 where there have been no fresh projects put on the market, said Wong Siew Ying, PropNex head of research and content. 'The decline in new home sales in May is not unexpected, as fresh project launches tend to drive transactions each month,' Wong explained. Nicholas Mak, chief research officer at added that ongoing uncertainties in the economy and job market dampened private housing sales on both the demand and supply sides. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up 'Developers are waiting for a more favourable market condition to launch their residential projects, while homebuyers are waiting for choice project launches and lower prices,' he said. Including ECs, 336 units were sold in May with just 20 units launched, versus the 263 units sold and 238 units launched in the same month in 2024. In comparison, 759 units were sold and 1,344 units launched in April. Still, the new sales tally for the first five months of 2025 stands at around 4,350 units – more than double the 1,688 sold in the same period last year, said Mohan Sandrasegeran, Singapore Realtors Inc head of research and data analytics. 'The stronger performance (this year) underscores resilient buyer confidence and more compelling project offerings, even amidst broader economic uncertainties and cautious sentiment,' he said. Quek saw persistent interest picking up in the luxury market, with nine new non-landed homes sold for between S$5 million and S$10 million in May – up from the two units that transacted for the same price range in the month before. There were also three transactions of more than S$10 million recorded in May, similar to the previous month, he said. The priciest deal was for a 4,489 square feet unit at the freehold 21 Anderson condominium in District 10, which started marketing in April, for S$24 million or S$5,347 per square foot (psf). The other two units – spanning 4,209 sq ft and 4,219 sq ft, respectively – were sold at 32 Gilstead in District 11. Both changed hands at S$15.1 million or around S$3,600 psf. All three were bought by permanent residents, pointed out Lee Sze Teck, Huttons senior director of data analytics. Overall, this group of buyers remained relatively low, accounting for 14.4 per cent of transactions valued at over S$1.5 million. Singaporeans were behind 83.4 per cent of such purchases, and foreigners a mere 2.2 per cent. Slow sales to persist In the following month, market watchers expect primary sales to remain sluggish with no major launches lined up amid the school holiday lull. The only launch on the market is the freehold Arina East Residences, which released a limited number of units for sale to invited clients in the first week of June. So far, just nine of its 107 units have been sold at a median price of S$2,982 psf. The uncertain macroeconomic landscape, stemming from global trade challenges posed by US tariff policies, may also prompt prospective buyers to be more cautious, added Quek of OrangeTee. 'On the other hand, interest rates have been moderating for the past few months, potentially drawing some investors back into the property market as mortgages become more affordable,' said Quek. 'Moderating interest rates may also help (public housing) upgraders better afford a private condo, assuming employment and real wages hold stable.' Huttons' Lee estimates that around 16 projects generating more than 7,800 homes may be launched for sale in the second half of this year. These include the 683-unit W Residences Marina View in District 1, the 343-unit LyndenWoods in District 5, and the 600-unit Otto Place EC in District 24. But CBRE research head for Southeast Asia Tricia Song reckons with most of these projects located in the Core Central Region and Rest of Central Region – which tend to see higher prices – the monthly sales tally is unlikely to surpass 1,000 units, as seen in previous quarters. The full-year figure may therefore come in at 7,000 to 8,000 units, signalling a slowdown in demand in the next few quarters, said Song. 'There is downside risk to this projection should economic conditions worsen significantly.' Prices may consequently rise 3 to 4 per cent for the year, thanks to a still-low unsold inventory and strong household balance sheets, she said. 'Growth momentum could plateau in the next few quarters on a weaker economic outlook.'
Straits Times
13-05-2025
- Business
- Straits Times
URA puts up second Chuan Grove site for sale; firm bids expected amid steady demand in the area
The 14,514.3 sq m site, which is on a 99-year lease, can accommodate 505 new condominium units. PHOTO: SCREENGRAB FROM GOOGLE MAPS URA puts up second Chuan Grove site for sale; firm bids expected amid steady demand in the area SINGAPORE – A second Chuan Grove residential site has been released for sale under the 2025 Government Land Sales (GLS) programme. The 14,514.3 sq m site, which is on a 99-year lease, can accommodate 505 new condominium units. It is expected to attract firm interest amid steady demand for housing in the area. The release of this plot follows the December 2024 tender launch for a similarly sized adjacent site in the Lorong Chuan area. That tender, expected to yield an estimated 555 units, closes on July 8. Strong sales The two Chuan Grove plots are on the market after a launch in the area recorded strong sales in November 2024. Kingsford Development moved nearly 700 of the 916 units at its Chuan Park project over the launch weekend, making for a 76 per cent take-up rate at an average price of $2,579 per sq ft. OrangeTee & Tie chief executive Justin Quek said: 'With only 168 units left as of March 2025, based on URA monthly developers' sale data, there will be limited new housing options, which may translate to higher demand for future private land sites.' Market watchers expect the latest plot to draw three to six bidders, and a top bid of between $1,000 and $1,350 per sq ft per plot ratio (psf ppr). In 2022, Kingsford acquired the old Chuan Park condo in a collective sale for $890 million, at about $1,256 psf ppr. Before the November 2024 launch of Chuan Park, the last new project in District 19 was Bartley Vue in 2019, noted ERA Singapore chief executive Marcus Chu. Taking in the two sites now being tendered by the Government, 'including Chuan Park, the estate will likely see almost 2,000 units launched in two years', he said. Still, the project would be of relatively lower risk, given the low level of unsold units in the area, said Huttons Asia chief executive Mark Yip. He pointed out that the outside central region (OCR) has 4,361 unsold units in the market as at the first quarter of 2025 – the lowest number since the fourth quarter of 2022. 'With an annual average sales of 3,019 units in the OCR in the last five years, this unsold supply can be easily absorbed by the market in slightly more than a year,' Mr Yip said. OrangeTee's Mr Quek expects demand in the Lorong Chuan area to be supported by home owners looking to upgrade from Housing Board flats or downsize from landed properties. He noted a 'large catchment' of HDB upgraders in the nearby areas of Serangoon, Bishan and Ang Mo Kio, as well as many landed homes in Serangoon Gardens and Lorong Chuan. Desirable location The location is also desirable, thanks to its proximity to educational institutions and Lorong Chuan MRT station, said chief research officer Nicholas Mak. 'The current economic outlook, which would affect property market sentiment, is murky due to the ever-changing tariff stance of the US Trump administration. But by the time this new condominium is ready to be launched in 2027, there could be more clarity on the economic front.' The tender for the Chuan Grove site closes on Sept 4. THE BUSINESS TIMES Join ST's WhatsApp Channel and get the latest news and must-reads.
Business Times
13-05-2025
- Business
- Business Times
URA puts up second Chuan Grove site for sale; firm bids expected amid steady demand in the area
[SINGAPORE] A second Chuan Grove residential site has been released for sale, under the 2025 government land sales (GLS) programme. The 14,514.3 square metre (sq m) site, which can accommodate 505 new 99-year leasehold condominium units, is expected to see firm interest amid steady demand for housing in the area. The latest plot released comes after an adjacent similar-sized site in the Lorong Chuan area was launched for tender last December. The tender for the first Chuan Grove site, to yield an estimated 555 units, closes on Jul 8. Strong sales The two Chuan Grove plots are also on the market after a new launch in the area saw strong sales last November. Kingsford Development moved nearly 700 of the 916 units at its Chuan Park project over the launch weekend, making for a 76 per cent take-up rate at an average price of S$2,579 per square foot (psf). OrangeTee & Tie's chief executive Justin Quek said: 'With only 168 units left as of March 2025, based on URA monthly developers sale data, there will be limited new housing options, which may translate to higher demand for future private land sites.' Market watchers expect the latest plot to draw three to six bidders, and a top bid of between S$1,000 and S$1,350 per square foot per plot ratio (psf ppr). A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up In 2022, Kingsford acquired the old Chuan Park condo in a collective sale for $890 million, at about S$1,256 psf ppr. Before the November 2024 launch of Chuan Park, the last new project in District 19 was Bartley Vue in 2019, noted ERA Singapore's chief executive Marcus Chu. Taking in the two sites now being tendered by the government, 'including Chuan Park, the estate will likely see almost 2,000 units launched in two years,' said Chu. Still, the project would be of relatively lower risk given the low level of unsold units in the area, said Huttons Asia's chief executive Mark Yip. Yip noted that the outside central region (OCR) has 4,361 unsold units in the market as of the first quarter of 2025 – marking the lowest level since the fourth quarter of 2022. 'With an annual average sales of 3,019 units in the OCR in the last five years, this unsold supply can be easily absorbed by the market in slightly more than a year,' explained Yip. OrangeTee's Quek expects demand in the Lorong Chuan area to be supported by homeowners looking to either upgrade from current Housing and Development Board (HDB) flats or downsize from landed properties. He noted a 'large catchment' of HDB upgraders in the nearby areas of Serangoon, Bishan and Ang Mo Kio, as well as many landed homes in Serangoon Gardens and Lorong Chuan. The location is also desirable, thanks to its proximity to educational institutions and the Lorong Chuan MRT station, said chief research officer Nicholas Mak. 'Although the current economic outlook, which would affect property market sentiment, is murky due to the ever-changing tariff stance of the US Trump administration, by the time this new condominium is ready to be launched in 2027, there could be more clarity on the economic front,' added Mak. The tender for the Chuan Grove site closes on Sep 4.
