New private home sales surge over tenfold due to strong suburban demand

SINGAPORE: Singapore’s private residential property market saw a dramatic surge in sales in February, with transactions rising more than tenfold compared to the same period last year. The sharp increase was driven by strong demand for newly launched suburban projects, according to data released by the Urban Redevelopment Authority (URA) on Monday (17 Mar).

Excluding executive condominiums, developers sold 1,575 private residential units in February, up from 1,083 in January and significantly higher than the 153 units recorded in February 2024, URA data showed.

The Outside Central Region (OCR), which covers suburban mass-market projects, accounted for 92 percent of all new home transactions last month, with 1,452 units sold, according to a statement by PropNex Realty. The sales momentum was largely driven by two new launches—Parktown Residence in Tampines and ELTA in Clementi—which together made up 87 percent of February’s total sales.

“Brisk sales at Parktown Residence and ELTA have supercharged new home sales in February, extending the trend of healthy take-up rates at many new launches since November 2024,” said Wong Siew Ying, head of research and content at PropNex Realty.

Parktown Residence, a joint venture between CapitaLand and a UOL-SingLand consortium, was the top-selling project, moving 1,041 of its 1,193 units at a median price of S$2,363 (US$1,775) per square foot. Meanwhile, ELTA, developed by MCL Land and CSC Land, recorded sales of 326 out of 501 units, with a median price of S$2,538 per square foot. The project marks Clementi’s first major launch in four years.

In contrast, the Core Central Region (CCR), which includes luxury homes, saw a decline in sales to 25 units, down from 121 in January. Among the top performers in this segment were Keppel Land’s 19 Nassim, which sold five units at a median price of S$3,372 per square foot, and One Bernam in Tanjong Pagar, where the final four units were transacted at a median price of S$2,651 per square foot.

The Rest of Central Region (RCR), or city-fringe areas, also experienced a drop in new home sales, with 98 units sold, compared to 771 in January. The decline followed a spike in sales the previous month due to the launch of The Orie in Toa Payoh. Leading sales in the RCR was Pinetree Hill in Bukit Timah, which saw 22 units sold at a median price of S$2,613 per square foot, while Nava Grove by MCL and Sinarmas Land moved 18 units at S$2,574 per square foot.

Market analysts remain cautiously optimistic about the outlook for 2025, citing sustained demand but also potential risks from global economic uncertainties.

“The primary market started the year brightly, continuing the positive sentiment from end-2024,” Mr Wong said. “We remain cautiously optimistic about developers’ sales in 2025. There is still a long stretch to go, and it is not without downside risks, including uncertainties in the global economy in view of geopolitical tensions and trade frictions which may be disruptive to growth.”

Despite these risks, sales at new launches continue to be driven mainly by Singaporeans, new citizens, and permanent residents, according to Leonard Tay, head of research at Knight Frank Singapore. Real estate intelligence portal Mingtiandi quoted Mr Tay as saying that homebuyers have been more willing to make purchases at show flats since interest rates have been stabilising below last year’s levels.

Knight Frank forecasts that non-landed new home sales will range between 7,000 and 9,000 units for the year, with total non-landed private residential transactions projected to hit 19,000 to 23,000 units. However, these estimates depend on the government maintaining its current policies without introducing further cooling measures.

“Imbued with cautious optimism, 2025 is on track to be a more active year for the private home market despite the prevailing uncertainties on the global stage,” Mr Tay said. “Prices are likely to grow between 3 percent and 5 percent, with the growth supported by moderate-to-healthy take-up rates at new launches throughout the year.”

With strong demand at new suburban projects and stable interest rates, Singapore’s private home market appears set for an active year ahead, barring any major economic disruptions or regulatory changes.