New private home sales in Singapore hit a near four-month high

According to the latest estimates released by the Urban Redevelopment Authority (URA), excluding Executive Condominiums (EC), developers sold 784 units in November, showing a substantial month-on-month increase of 286.2% and a significant year-on-year increase of 201.5%. If ECs are included, the overall sales of new private homes reached 800 units, indicating a month-on-month increase of 257.1% and a year-on-year increase of 79.4%.

Among these, mass-market private homes stood out with a total of 838 units sold, followed by luxury and mid-tier private homes with 112 and 20 units sold, respectively. This demonstrates a diversified and balanced demand across different types of private homes in the market.

Experts attribute the sharp increase in November's sales to a lower number of new private home launches in the preceding months, leading to increased pent-up demand. Additionally, the popularity of projects like Jui Residences and Wallich Residence contributed to more than half of the total sales.

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Notably, luxury private home sales showed a significant upward trend, growing by 235.6% and selling 151 units. Among them, there were 60 units of luxury apartments priced above SGD 5 million, reaching a new high since May 2010.

Apart from local buyers, new projects also attracted attention from foreign buyers, with at least 14 units purchased by international buyers, including at least two from China. This indicates the strong international appeal of Singapore's real estate market.

Looking at the overall sales, the total sales of new private homes for the first 11 months of the year reached 6,536 units. Although December is considered a quieter period for the real estate market, analysts widely expect a slowdown.

They point out that factors such as a soft job market, declining rents, and adjustments to property taxes may contribute to an overall weakening of the private home market. However, if mortgage rates decrease and there is improvement in the economy and job market, sales are expected to remain stable in the coming year.