Private new home sales drop 27.2% MoM in February

The decline was attributed to the lack of major launches.

There were only 490 private new homes sold in February, which is 27.2% and 24% lower than the previous month and year, respectively.

Property expert PropNex said the decline in private new homes sales, excluding executive condominiums (ECs), was probably due to the “lack of major launches and the fast depleting unsold inventory in the suburbs, and to some extent in the city fringe as well.”

As of the fourth quarter of 2021, there were 4,306 unsold units in the Rest of Central Region (RCR), whilst Outside Central Region (OCR) has 3,972.

“As more units in existing projects are transacted, buyers may find that the balance stock of unsold homes may not be suitable for them, in terms of unit size and pricing,” PropNex said.

“This mismatch could persist and likely weigh on sales volume until more RCR and OCR launches come on stream, presenting buyers with a wider selection of units,” the analyst added.
 
Meanwhile, the only major launch for the month was the 32-unit Royal Hallmark located in District 15 in RCR. Only 10 units of the boutique freehold development have been sold so far.

With the major launch and the 84 units sold at Normanton Park for a median unit price of $1,853 per square foot (psf), the RCR also led in the number of sold units across regions, contributing 51.6% to the total sales for the month or 253 units.

OCR also had a big contribution in the February sales with 144 units sold; of which, 30 were located at Dairy Farm Residences, sold at a median price of $1,715 psf.

Core Central Region (CCR), on the other hand, saw a decline in its new home sales, falling to a one-year low with 93 units sold in February 2022.

Leedon Green was the most popular CCR project during the month—transacting 14 units at a median price of $2,838 psf.

PropNex said the cooling measures introduced last December 2021 “could have dampened sales in the CCR, as this sub-market tends to attract investors and foreign buyers, who are more severely affected by the hike in additional buyer’s stamp duty (ABSD) rates.