Attention, homebuyers! The real estate market in Singapore has been on the move lately, and it's showing no signs of slowing down. New private home sales increased for the third consecutive month in March, thanks to the launch of The Botany at Dairy Farm in the suburbs. The Botany, a 99-year leasehold project, moved 184 units at a median price of $2,068 per square foot (psf), accounting for more than a third of total monthly sales.
Despite the overall sales declining nearly 25% from 654 units a year ago, developers still managed to move 493 units in March, a 13.6% increase from February. Including executive condominiums, March's sales gained 8.9%, selling 513 units compared to 471 in February.
However, the take-up rate for the first quarter stood at 95.1%, below parity for the first time since the first quarter of 2021. Buyers seem to be more supply-led than demand-driven, depending on what projects are released that month, according to Ms Christine Sun, senior vice-president of research and analytics at OrangeTee.
Despite this, analysts are optimistic that momentum in new home sales will continue to build in the coming months. Up to four new projects may be launched in April and May, including The Continuum in Thiam Siew Avenue, Newport Residences in Anson Road, The Reserve Residences in Jalan Anak Bukit, and Lentor Hill Residences.
The Botany and Tembusu Grand in Katong, another project that sold 53% of its units over its launch weekend earlier in April, have set new average launch price benchmarks in District 23 and District 15, respectively. This reflects resilient underlying demand for new private homes and still ample liquidity, according to Ms Wong Siew Ying, head of research and content at PropNex.
Based on quantum, the largest proportion of new private homes sold, excluding executive condominiums, were in the $1.5 million to $2 million range, at 29.4%. This was followed by the $1 million to $1.5 million bracket, at 25.4%.
The suburbs clocked the highest sales among the three submarkets, with 230 new units changing hands in March, up from the 48 units sold in February. This shows that there is genuine demand for mass-market homes amid limited unsold new home stock in the suburbs.
The real estate market in Singapore has been challenging, with record-high interest rates and a slowing economy. But the launch of new projects and the continued demand for private homes are signs of resilience in the market. With more new launches expected this year, homebuyers can look forward to more opportunities to find their dream homes.