December 2022 sees 170 private new homes sold, lowest since January 2009

Developers sold just 170 new homes excluding executive condominiums (ECs) in December 2022, a 34.6% Tengah Plantation EC plunge from the 260 units sold a month earlier and a 73.8% y-o-y decline. This marks the lowest monthly sales since January 2009 and cements the third successive month-on-month fall in new home sales. The lack of launches, year-end seasonal lull, cooling measures and deteriorating economic backdrop are all key factors behind the low numbers.

In stark contrast, EC units saw a surge in December 2022, increasing from 186 units sold in November 2022 to 468 units last month. This follows the sales launch for Tenet – the 618-unit EC in Tampines by Qingjian Realty, Santarli Realty and Heeton Holdings. Of those units, 451 or 73% were sold at a median price of $1,381 psf, with the joint developers announcing on Jan 7 that the project had achieved a take-up rate of 93%.

When including ECs, new home sales for the month totalled 638 units, up from 446 units in November 2022. Core Central Region (CCR) transactions topped the sales, making up 52% of the monthly total and a 40% drop from the 149 units sold the month before. The Rest of Central Region (RCR) and Outside Central Region (OCR) saw m-o-m declines of 26% and 29% respectively.

Foreign buyers continued to pick up in December 2022, making up 37 or 22% of new home sales, the highest proportion recorded throughout the year. When taking into account the entire year, new private home sales excluding ECs totalled 7,153 units, representing the lowest annual figure since 2008.

Looking ahead, new home sales in January may be bolstered by Sceneca Residence – the 268-unit project in Tanah Merah Kechil Link by MCC Singapore, Ekovest Development and The Place Holdings. The project recorded strong sales on its launch day with 60% of units sold at an average price of $2,072 psf.

Up to 12,000 new private homes could be launched throughout this year, providing options for home buyers. However, economic uncertainties, including rising interest rates and employee layoffs, may dampen sentiment. ERA Realty Network’s Nicholas Mak estimates that developers could sell about 9,000 to 10,000 housing units in 2023.

Overall, despite expected slower sales in the coming months due to the Chinese New Year seasonal lull and worse economic climate, the Singaporean property market remains attractive to foreign buyers, with the success of Tenet and Copen Grand ECs signalling an underlying demand in the EC segment.