New private home sales decreased last month due to the Chinese New Year period. During this time, many potential buyers were either on holiday or preoccupied with festive celebrations. Moreover, February is a shorter month than others, resulting in fewer opportunities for developers to launch new projects.

According to data from the Urban Redevelopment Authority (URA), 149 new private homes, excluding executive condominiums (ECs), were transacted in February, a 47 per cent decrease compared to the 281 units sold in January. This is the lowest monthly sales since 135 units were sold in December 2023. This is also the lowest February sales (excluding EC) since February 2008, with 174 transactions.

New home sales, including ECs, dipped by 68.9 per cent from 588 units in January 2024 to 183 units in February 2024. On a year-on-year basis, last month’s sales (excluding EC) declined by 65.6 per cent from 433 units recorded in February 2023.

As there were no major project launches, most sales came from previously launched projects.

Lumina Grand, The Botany at Dairy Farm, North Gaia, Blossoms By The Park, Pinetree Hill, and Grand Dunman were the best-selling projects (including ECs) in February. Lumina Grand sold 16 more units last month, while The Botany at Dairy Farm sold 15 units.

Regarding price quantum, 27 per cent of last month’s transactions (excluding ECs) were at least S$3 million, the highest since October 2023 at 30.7 per cent. Last month, 31.8 per cent were below S$2 million, while 41.2 per cent were at least S$2 million but less than S$3 million.

Last month’s transactions, excluding ECs, were mostly concentrated in the city fringe areas and the suburbs. 38.9 per cent or 58 units were in the Rest of the Central Region (RCR), while 38.9 per cent or 58 units were in the Outside Central Region (OCR). The remaining 22.1 per cent, or 33 units, were in the Core Central Region (CCR). This was the third consecutive month when the CCR had the smallest proportion of developers' sales due to the lack of new luxury launches. 

According to URA Realis data, no new condominiums were sold for more than S$10 million at the upper end of the market in February 2024. However, eight condos were sold for at least S$5 million but less than S$10 million. The most expensive condominium sold last month was a 3,035 sqft freehold unit situated on the fifth floor of Terra Hill, transacted for S$8.1 million or S$2,652 psf.

The market performance in March may provide a more accurate reflection of buyers' sentiment when compared to February, since the latter is a shorter month with a lack of new launches. New home sales are anticipated to bounce back in March due to the launch of a major project, Lentor Mansion, in the suburbs, and the relaunch of the luxury condominium, Cuscaden Reserve. Lentor Mansion is a joint development by renowned developers GuocoLand and Hong Leong Holdings and is expected to draw strong interest from local homebuyers due to its tranquil location, and unique design features.