Significant surge in private home sales in January; more than double in December

SINGAPORE: There’s a significant surge in private home sales in January, more than doubling from December’s low point, thanks to the launch of three new condo projects, Singapore Business Review reports.

According to data from the Urban Redevelopment Authority (URA), the figures revealed that 281 units were sold in January, a stark contrast to the mere 135 sales recorded in December, which marked a 14-year low. This boost in sales can be attributed to new housing projects on the market.

Tricia Song, CBRE’s Head of Research, highlighted that despite this upturn, January’s sales were still 29% lower than Jan 2023, indicating a subdued overall housing demand.

She pointed out that the take-up rates for the newly launched projects were below the typical rates in previous years, with the Lumina Grand EC project leading the pack by selling 53% of its units. The Hillhaven at Hillview and Arcady at Boon Keng projects recorded 19% and 27% take-up rates, respectively.

Song stated, “This is indicative of the current tentative buying sentiment where buyers have turned more selective amid a myriad of new launch options, buyer fatigue and increasing resistance to high price points.”

Leonard Tay, the research head at Knight Frank, noted that Jan 2024 marked the quietest January in home sales since 2009, with overall demand in the private residential market expected to remain conservative in the early part of the year.

Breaking down the sales data further, the URA revealed that the Outside Central Region led with 144 new units sold, followed by the Rest of Central Region with 112 units and the Core Central Region with 25 sales.

Christine Sun, chief researcher and strategist at OrangeTee predicted stable demand for Executive Condominiums (ECs) in the near future, citing limited supply and affordability as driving factors.

Looking ahead, Song anticipates that sales will remain subdued in February due to the seasonal lull brought about by the Chinese New Year. However, she expects a rebound in March with a healthy pipeline of new launches slated for the month.      /TISG

Read also: Why are property agents increasing in Singapore despite slower home sales?

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