February Sees Surge in New Private Home Sales in Singapore Thanks to Suburban Launches and Lower Mortgage Rates

SINGAPORE – The new private home market in Singapore experienced a remarkable boom in February, primarily driven by two significant suburban property launches and a drop in mortgage interest rates. This surge resulted in developers achieving their highest sales figures for February in 13 years, with a staggering total of 2,658 transactions reported for the months of January and February combined.

For context, the same period in 2024 saw only 2,714 units sold from January to August, showcasing a stark contrast in market activity.

Leonard Tay, head of research at Knight Frank, explained that lower interest rates compared to a year ago have rekindled interest among homebuyers. "With rates stabilizing and expected not to drop further, buyers are more inclined to seize opportunities," he stated.

The US Federal Reserve's upcoming policy meeting on March 20, which is anticipated to maintain interest rates amid economic uncertainties, plays a role in shaping the local market landscape. This stability in the US scenario limits potential decreases in short-term borrowing costs in Singapore, such as the Singapore Overnight Rate Average (Sora), which directly affects mortgage rates.

Developers capitalized on the favorable conditions, introducing a robust number of new launches. In February alone, excluding executive condominiums, a total of 1,694 new units were made available, sharply increasing from 896 units launched in January. Notable new projects included the 1,193-unit Parktown Residence in Tampines and the 501-unit Elta in Clementi.

This uptick in supply saw a dramatic spike in new home sales, excluding ECs, which rose by 45.4% to 1,575 units in February, up from 1,083 units in January. Moreover, this figure is a tenfold increase compared to the only 153 units sold a year prior, marking the highest volume of sales for February since 2012, when 2,417 units were sold.

Including ECs, total new home sales climbed 45.3%, reaching 1,604 units in February, up from 1,104 in the previous month. The growing momentum can be attributed, in part, to pent-up demand for the newly launched Parktown Residence, known for its comprehensive amenities and proximity to upcoming transport facilities.

The Parktown Residence has been a standout performer, achieving sales of 87% of its units—1,041 in total—at a median price of $2,363 per square foot (psf). Its appealing location offers direct access to a retail mall, transport links, and nearby public services, making it attractive to potential buyers.

Analysts like Christine Sun from OrangeTee Group highlight that regions such as Tampines hold promise for future price appreciation, especially with anticipated developments emerging from the relocation of Paya Lebar Air Base. New transport links and public amenities set to roll out will further enhance property values in this area.

Meanwhile, the Elta project in Clementi also performed well, with 65.1% of its units—326 out of 501—sold at a median price of $2,538 psf.

PropNex's research head, Wong Siew Ying, noted that the outstanding sales at both Parktown Residence and Elta have injected vitality into the market. However, she forecasts a potential slowdown in suburban sales for March due to limited new launches.

Interestingly, Executive Condominium sales also showed increases, with 29 transactions recorded in February compared to 21 in January, primarily driven by a successful launch at Novo Place in Tengah.

In the rapidly evolving market, the average pricing set by developers will remain crucial in maintaining healthy sales performance. As first-quarter results enter the spotlight, initial forecasts suggest that the volume of sales could match or even surpass the previous quarter's figures, illustrating a dynamic recovery in Singapore's private home market. With several launches on the horizon, eager buyers are urged to remain vigilant as attractive opportunities emerge.