New homes sales crash by 23.6% to 559 units for February

Only one launch was recorded for the month.

The residential sector was in a freefall state as new home sales collapsed by 23.6% MoM to 559 units for February, according to the Urban Redevelopment Authority’s latest sales survey.

Excluding executive condominiums (EC), sales fell by 22.5% from 680 units in January to 527 units in February 2022. On a YoY basis, new sales, with the exception of ECs, decreased by 19.3% from 645 in February 2021. 

February also saw only one new project launch, the 32-unit Royal Hallmark at Haig Lane, while existing projects continued to clear their stocks. Projects that performed the best include Normanton Park, Dairy Farm Residences, Avenue South Residence, The Florence Residences, Verdale, One Pearl Bank, Parc Greenwich, Midwood, Leedon Green, Kopar at Newton and Fourth Avenue Residences. 

Comments from PropNex Realty and Cushman & Wakefield also agree that this plays a factor in the dip in sales, as buyers could be waiting out the period for more options to choose from in the future. 

Breakdowns provided by the URA point to the Rest of Central Region taking up 50.5% of total new sales, excluding EC. Outside of the Central Region followed suit with 30.4%, whilst the Core Central Region lagged behind at 19.2%. 

Christine Sun, SVP of Research & Analytics, OrangeTee, pointed to three factors for the month’s slip in performance. 

“The private residential market is reeling under a triple whammy of cooling measures, declining housing supply, and global uncertainties from the Russia-Ukraine conflict. Sales take up was notably slower last month as buyers were more cautious and stayed on the sidelines,” commented Sun. 

The numbers are also expected to worsen over the year, as Sun points to a 20% drop to around 9,000 units for launch. While more land parcels would be released from the Government Land Sales programme, the new homes are only expected to enter the market the following year.