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Business Times
5 days ago
- 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.'
Business Times
5 days ago
- 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.
Yahoo
29-01-2025
- Business
- Yahoo
Singapore's luxury condo resale market stalls in 2024 as foreign buyer demand plummets
SINGAPORE, Jan 29 — Singapore's luxury condominium resale market has slowed significantly in 2024, with property agents struggling to find buyers despite a high number of listings. A search on property portal PropertyGuru shows over 200 luxury condo listings priced above S$10 million (RM32.6 million) in the Orchard area, with multiple agents marketing the same properties, according to a report in The Straits Times today. The decline in transactions is largely attributed to the 60 per cent additional buyer's stamp duty (ABSD) imposed on foreign buyers in April 2023, along with a limited new supply of high-end condominiums. In 2024, only 21 luxury condo units in the Core Central Region (CCR) were resold at prices above S$10 million, down from 36 in 2023 and 56 in 2022. In contrast, 100 such units were resold in 2021. A record-breaking transaction in 2020 saw a penthouse unit at Wallich Residence sell for S$62 million. The most expensive luxury condo resale in 2024 was a 5,801 sq ft unit at Eden Residences Capitol, which fetched S$19.75 million, according to Urban Redevelopment Authority (URA) Realis data. This was a significant drop from 2023, when the priciest deal was a S$32 million penthouse at Goodwood Residence, reportedly purchased by a Singapore permanent resident (PR) of Chinese nationality. Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, said: 'The decrease in (the number of) transactions can primarily be attributed to a decline in demand from foreign buyers, who have been significantly affected by the 60 per cent ABSD.' PRs pay 5 per cent ABSD on their first property, while Singapore citizens are subject to 20 per cent ABSD only on their second property. Sun also noted that a lack of new supply contributed to the market stagnation. 'Last year, the number of new luxury homes released to the market was significantly limited, particularly due to the scarcity of launches in the CCR,' she said. Property agents do not anticipate a market rebound in the near future. Nicole Teo, deputy branch associate director of OrangeTee & Tie, said: 'Foreign buyers had always been the main group buying luxury condominiums, followed by PRs, and then the few Singaporeans. A Singaporean with S$20 million to invest in a property would rather buy a good landed property than a condo.' Foreigners are restricted from purchasing landed homes in Singapore unless they obtain permission from the Land Dealings Approval Unit, with Sentosa Cove being the exception. Teo added: 'Foreigners can't blow that sum on a landed property (except in Sentosa), so the high-net-worth foreigner would spend it on a luxury condo instead — but that was before the hefty ABSD imposed on foreigners.' Luxury condos remain a market largely driven by investors, but arranging property viewings is challenging, according to Stefanie Wong of Singapore Realtors Inc. 'With tenants in place, arranging viewings can take weeks. Sometimes (it takes) three to six months, or even up to a year, to sell a unit,' she said. Wong is currently marketing two luxury units at The Ritz-Carlton Residences, including a penthouse listed at S$39 million and a four-bedroom unit priced below valuation at S$10.9 million. Alex Low of PropNex Realty, who specialises in Sentosa Cove homes, said sales in the enclave are now primarily driven by Singaporeans, with a smaller group of foreign buyers exempt from the 60 per cent ABSD. Buyers from the US, Iceland, Liechtenstein, Norway, and Switzerland are not required to pay ABSD on their first residential property in Singapore. In 2024, 132 condos were resold in Sentosa, with 62 per cent of transactions coming from The Residences at W Singapore Sentosa Cove. Analysts suggest this increase in activity may reflect a spillover from city fringe demand, where prices remain higher than those in Sentosa. Low noted that many luxury condo listings on the mainland, particularly those above S$10 million, have remained unsold for months. 'Owners of such high-value properties typically have strong holding power and are not in a rush to sell. However, the pool of high-net-worth investors is limited, especially since rental yields are not particularly attractive,' he said. 'Potential buyers also hesitate because these properties could be challenging to sell in the future.' Despite the slowdown, Sun highlighted some positive trends. URA Realis data showed that median rents of non-landed properties in the CCR (excluding executive condominiums) increased slightly, from S$5.50 per square foot per month (psf pm) in July-September 2024 to S$5.57 psf pm in the last three months of the year. However, rents remain below the S$5.68 psf pm recorded in late 2023. 'This slight improvement in the final quarter of 2024 could have been driven by tenants who have shifted from city fringe to prime areas, as rents in the CCR are still lower than they were a year ago,' Sun said. 'It is possible that some investors will continue to buy properties for rental investment as the rental recovery may continue this year.'
