New private home sales in Singapore fall 60.5% in February on lack of new launches

DEVELOPERS in Singapore sold 645 new private homes in February, down 60.5 per cent over January's 1,632 units amid a paucity of new launches.

Developers launched 167 units for sale in February against 3,300 in January.

January's large number was due to three projects - the mega 1,862-unit Normanton Park, which moved 625 units, followed by the 700-unit Parc Central Residences executive condominium (EC), which sold 417 units, and the 429-unit The Reef at King's Dock that sold 221 units.

February's volume was the lowest monthly sales since May 2020's 487, and down 33.9 per cent from 976 achieved in February 2020.

The figures - released by the Urban Redevelopment Authority (URA) on Monday - exclude EC units, which are a public-private housing hybrid.

Including the 111 ECs sold, developers moved 756 new homes in February, down 64.4 per cent from January and 42.5 per cent lower from a year ago.

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The sharp drop in sales can be attributed to Chinese New Year, a period when developers usually hold back launches, said Lee Sze Teck, Huttons Asia director of research.

"This is also the lowest number of units launched for sale in February. The previous low was in February 2018 which also coincided with Chinese New Year," he said.

Sales in the primary market are very much supply-led, Mr Lee noted.

"When there are new project launches to excite the market, sales volume will be higher. Take for example in February 2020, The M was launched for sale, pushing monthly sales close to 1,000 units," he said.

"If The M was not launched in February 2020, sales will be around 600 units. After adjusting for project launches, developers' sales in February 2021 are on par with a year ago. Demand for homes is still healthy in the market," Mr Lee added.

"District 15 saw a spike in interest in February. We believe that some buyers are beginning to appreciate that supply in District 15 will be constrained in the future as a result of tighter government rules on the average size of dwelling units and stepping in to buy a seaside-living lifestyle."