The latest estimates released by the Urban Redevelopment Authority of Singapore show that in May this year, a total of 1,038 new private residential units were sold in Singapore, a month-on-month increase of 17% and the highest sales volume in 12 months since May last year. The high sales volume in the month was mainly due to the two projects in the other Central District, which represent mid-range private housing, pushing up sales, with The Reserve Residences and The Continuum selling a total of 748 units, accounting for 72% of total sales in the month. New private residential sales in the core Central District and outside the Central District, which represent high-end private residential, accounted for 14.6% and 3.8% of total sales, respectively.

However, the number of new private residential units launched in the whole month of May was actually exactly double that of April, at 1,595 units. The 1,038 units sold accounted for only 65% of the new units launched, a ratio that is the lowest in more than two years.

Among the other Central District (RCR) sales, The Reserve Residences and The Continuum were the top performers, accounting for 88% of total sales in the area.

The Reserve Residences, a mixed-use project with easy access to transportation, amenities, educational resources and attractive sizing, combined with the above factors, resulted in outstanding sales performance and reflected that buyer demand for such mass-market private residential projects remains solid.

According to Y.C. Tai's Director of Industrial Research and Consultancy, Mr. Lan Zhenwen, developers are expected to launch new projects in the coming months, but due to the uncertainty of the overall economic environment and interest rate trend, buyers are expected to be more cautious and place more importance on the value for money of private residential projects and are unlikely to overspend.

Of the top 10 best-selling projects island-wide, five are located in the Other Central Region (RCR), four in the Core Central Region (CCR) and the remaining one in the Other Central Region (OCR).

In the CCR, The Atelier, Pullman Residences Newton and Leedon Green accounted for one-third of the total sales in the CCR.

In the Other Central District (OCR), projects such as Manjing Xuan (The Botany at Dairy Farm) and Qu Shui Lenting (Lentor Modern) also had outstanding sales performances, accounting for more than half of the total sales in the area.

In terms of price, there are six real estate projects, including The Atelier (The Atelier), Xin Li Jia Yuan (Piccadilly Grand), Wan Jing Xuan (The Botany at Dairy Farm), Pullman Residences Newton (Pullman Residences Newton), Green Pier Arden (Leedon Green) and (Hyll on Holland) saw an increase in median sales price, up 1.8% month-over-month. Of the top 10 best-selling real estate projects, two saw their average price decline by 2.0% month-over-month. The remaining two projects were new launches.

Not surprisingly, demand from expatriate buyers for homes was hit by the cooling measures. Overall, the number of foreign buyers purchasing non-landed homes, including both new and second homes, fell by half to just 71 units in May, down from 158 units in April. And compared to the beginning of the year, the percentage of home purchases by foreign buyers is also declining.

The high buyer's additional stamp duty (ABSD) has stopped more foreign buyers in their tracks in the home buying process, although Singapore permanent residents buying their first property are not affected by the latest cooling measures, said Lan.

On the other hand, according to Lan Zhenwen, Singapore will add an average of 50,000 new citizens and permanent residents every year, and those who obtain Singapore permanent resident or citizenship will actively purchase properties because of the lower Buyer's Premium Stamp Duty.

Looking ahead, Lan believes that the sales performance of the new private residential market this year will depend on the market reversal of several new projects that will be launched next, such as Pinetree Hill and Grand Dunman in other central districts, and Lentor Hill Residences outside the central district.

Lan Zhenwen said that new private home sales are expected to be 7,000-8,000 in 2023 due to the rebounding market sentiment and stable employment situation. However, the tight financing environment will continue to limit buyers' ability to purchase homes; second home sales in Singapore are down and median prices have been flat for the past four months. 2023, private home prices in Singapore are expected to rise 4-6%.