SINGAPORE – A Record-Breaking Weekend for Homebuyers

In a remarkable show of demand, homebuyers in Singapore snapped up approximately 1,150 new condominium units during an extraordinary weekend. Leading the charge was the highly anticipated Lentor Central Residences, boasting a staggering 93% purchase rate, closely followed by the executive condo project Aurelle of Tampines. In contrast, the residential tower Aurea experienced a slower performance.

Excluding executive condominiums (ECs), sales figures for the weekend have pushed total home sales in the first quarter of the year to over 3,200 units, marking the most robust first-quarter performance since 2021, according to Mark Yip, CEO of Huttons Asia. This surge in activity is nearly on par with the previous quarter’s developer sales, which recorded 3,420 units.

Back in November 2024, property developers launched an unprecedented six new projects, with Emerald of Katong, Nava Grove, and Novo Place EC achieving record sales. Yip highlighted that this recent spike in demand has been fueled by strong economic fundamentals, including a significant increase in wealth and recent interest rate cuts.

However, Nicholas Mak, chief research officer at Mogul.sg, warned that these contrasting sales trends could spell challenges for future projects in the Core Central Region (CCR) set to be launched in 2025. He emphasized that properties in the Outside Central Region (OCR) are now attracting far more interest compared to those in prime areas, illustrating a shift towards a "two-speed market."

Mak expressed concerns about the current market conditions, describing them as "frothy." He remarked that it is not typical for large residential projects consisting of over 400 units to achieve a 90% sell-out rate within the first two days of launch, highlighting the increased urgency in buyer activity.

Lentor Central Residences: Stellar Performance

Within the 477-unit Lentor Central Residences, located on Lentor Hills Road, a staggering 445 units were sold at an average price of $2,200 per square foot (psf) as of March 9. This places the project's take-up rate at 93.3%, according to developers Hong Leong Holdings, GuocoLand, and CSC Land Group. PropNex CEO Ismail Gafoor noted that this pricing is competitive for an OCR project, especially in comparison to other recent launches where prices exceeded $2,500 psf.

Gafoor highlighted the project's appealing location near an MRT station and commercial offerings in the vicinity, coupled with a lack of unsold inventory from prior launches, as critical factors driving the sales success. Prior to Lentor Central Residences' launch, more than 90% of units from five previous projects in the area had been sold, underlining robust demand for mass-market private condominiums in Singapore.

Aurelle of Tampines: Executive Condo Demand Surges

Aurelle of Tampines showcased an impressive performance by selling 682 out of 760 units within just one day, at an average price of $1,766 psf, reported developer Sim Lian Group. Notably, all four and five-bedroom units were sold, with the 30% allocation for second-time buyers completely filled by mid-afternoon.

ERA Singapore executive officer Eugene Lim indicated that demand could have been even higher if there weren't restrictions on second-time buyers. The successful launch also alleviates a significant gap in the EC market, where currently fewer than 100 units remain available.

Mark Yip from Huttons suggested revising policies to expand the quota for second-time EC buyers, aligning it with new allocations for three-room and larger Build-To-Order flats.

Aurea: Modest Launch Performance

In stark contrast to the other projects, the 45-story residential tower Aurea, which offered 188 units, saw only 23 units sold at an average price of $3,005 psf, resulting in a take-up rate of just 12.2%. Yip stated that CCR projects typically range from 10% to 30% in sales during a launch weekend, largely due to the absence of a sizable pool of HDB upgraders that suburban projects attract.

Despite the lukewarm sales at Aurea, PropNex’s Gafoor viewed the market conditions positively, suggesting that the steady and long-term sales observed in the CCR segment may provide a gradual improvement in overall take-up rates.

The contrasting performances of these recent launches in Singapore's diverse real estate market reflect shifting buyer preferences and economic realities. As the property landscape continues to evolve, insights from industry experts will be crucial for navigating future developments.