Unpacking demand for Singapore’s new condo launches
Is it pricing, location, upgrader demand or project-specific attributes? Here’s a closer look at factors that have driven the numbers at recent launches that have achieved outstanding sales
[SINGAPORE] Despite the gathering clouds from escalating geopolitical trade tensions, Singapore’s private new sale market continues to thrive. The Ministry of Trade and Industry has projected gross domestic product growth of 1 to 3 per cent in 2025, following a 4.4 per cent expansion in 2024, and may further downgrade forecasts after US President Donald Trump’s sweeping tariffs landed on Apr 3.
While the outlook for economic growth has moderated, demand for new private properties is showing strength, with sales performance exceeding expectations since October 2024.
Several high-profile condominium launches over the last several months demonstrated the resilience of the market. Chuan Park sold 76 per cent of its units at an average price of S$2,579 per square foot (psf), only to be surpassed by Emerald of Katong, which sold nearly 99 per cent at S$2,621 psf. The momentum carried into 2025, with Parktown Residence recording sales of more than 1,000 units during its launch weekend, a feat last achieved by High Park Residences in 2015.
These numbers reflect renewed buyer confidence, driven by shifts in affordability, evolving buyer demographics and project-specific appeal. What is driving this renewed interest, and what will it mean for the market’s trajectory ahead?
With the latest cooling measures in place, demand from investors purchasing second homes or foreign buyers without permanent residence has been muted, due to the high Additional Buyers’ Stamp Duties (ABSD) payable. As a result, most home purchases are for owner occupation.
While the initial strong sales could be attributed to the balancing of demand and supply in 2024, sustained sales momentum suggests that more buyers are triggered to seek new properties.
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At the macro level, easing interest rates have improved affordability. As at Feb 28, 2025, the three-month compounded interest rate stood at 2.75 per cent, a notable decline from 3.64 per cent a year prior. This drop has made financing more manageable for prospective buyers, particularly those upgrading from public housing to private homes.
Additionally, rising prices of Housing and Development Board (HDB) resale flats have strengthened the position of HDB upgraders, further fuelling demand. In 2024, the HDB Resale Price Index rose by 9.7 per cent, while private home prices increased by 3.9 per cent.
Beyond financial factors, intergenerational wealth transfer has played a significant role in market activity. As baby boomers pass down wealth to their Gen Z children, more young buyers are entering the private property market earlier than before.
While the macroeconomic analysis explains the resilient demand in the private property market, performance varies across segments. We take a closer look at current property seekers’ preferences.
Microanalysis of project launches
Property seekers’ search behaviour on the PropertyGuru platform serves as a leading market indicator, revealing their initial intent through interactions with listings. Data shows that the number of views that a development receives in the weeks leading up to its launch weekend is a reliable predictor of sales success.
Demand is influenced by multiple factors, including size of the project and catchment area of property buyers. The catchment area depends on the number of HDB flats in the area and the stock of private residences, landed and non-landed, within the same district.
In the case of Emerald of Katong and Chuan Park, both projects are in districts with the highest concentration of private homes. Strong HDB upgrader demand also boosted sales for projects such as Park Town Residence.
Interestingly, the size of the project can limit interest, as Bagnall Haus recorded slightly lower interest despite its proximity to a large HDB estate.
While project size and catchment area offer a good gauge of the sales performance, the availability of options and unique selling points of projects also contribute to the success of the projects.
Areas without a new launch for years will often have pent-up demand, and new projects tend to do well. Chuan Park, Norwood Grand and The Orie are some examples. The lack of comparable alternatives often led to stronger sale intent, as more property seekers zeroed in on the new project.
Projects with strong unique selling points are also harder to substitute, increasing buyer interest and sales success. Features such as integration with a larger development and close proximity to an MRT station significantly enhance the appeal of a project such as Parktown Residence – which is part of an integrated development that includes a new MRT station on the Cross Island Line.
Short-term spike or lasting shift?
The market’s strong momentum from October 2024 continued into the first quarter of 2025. During its launch weekend of Mar 8, Lentor Central Residences recorded a 93.3 per cent take-up rate, selling 445 out of 477 units.
According to DataSense, the number of views for non-landed residential properties in the Outside Central Region (OCR) weighted by intent has risen 32.7 per cent year-on-year, and is still on the upward trajectory. This leading indicator suggests that demand for non-landed properties in OCR is likely to remain strong in the near term.
However, the same level of enthusiasm has not been observed in the Core Central Region, with properties taking longer to sell due to higher price points and weakened foreign demand, exacerbated by ABSD measures.
For developers, aligning projects with evolving buyer preferences is key to sustained success.
Accessibility remains a priority, with properties near MRT stations, transport hubs and top schools attracting strong demand. Projects in HDB-heavy areas such as Toa Payoh benefit from upgraders, while those near landed estates appeal to buyers seeking exclusivity at a lower price, as seen with Emerald of Katong and Chuan Park.
With subdued foreign demand in the Central Business District, developers can target local buyers by enhancing work-life convenience and premium amenities.
As housing demand evolves, anticipating shifting trends and tailoring projects accordingly will position developers for long-term growth.
The writer is head of real estate intelligence, data and software solutions at PropertyGuru
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