Figures released by the Urban Redevelopment Authority (URA) on Wednesday (15 February) showed that the total number of new private residential units sold in January was 391. This was 130 per cent higher than the 170 units sold in December.

However, compared to the same month last year, developer sales in January were still 42.8 per cent lower than the 684 new units sold in January 2022.

The good sales volumes indicate pent-up demand for housing, particularly in suburban areas where supply remains tight.

Despite rising mortgage rates and the implementation of cooling measures in September 2022, the market saw a healthy number of transactions.

More foreign buyers and permanent residents are expected to return to Singapore's property market, especially with the reopening of China's international borders.

With the return of the Chinese super-rich, the luxury market is likely to see more notable transactions this year.

Will the news of higher stamp duty announced in Budget 2023 significantly affect the property market?

Analysts say it is unlikely to diminish the attractiveness of Singapore residential properties in the eyes of buyers.

Foreigners are likely to see the increase in property tax as a transaction cost, and a safe-haven premium for Singapore properties.

Most HDB upgraders buying properties under S$2 million should be able to afford the increased property tax.

The number of new condominium units (excluding executive condominiums or EC units) purchased by foreign buyers (non-permanent residents) continued to increase following the cooling measures in September, from 43 units in September last year to 56 units in January 2023.

The deals struck in January also surpassed the 36 deals signed in December and were above the monthly average of 43 new condominiums transacted from January 2022 to August 2022 (before the cooling measures in September).

The analysis shows that of total new condominium sales (excluding EC), non-permanent resident foreigner purchases soared from 4.6 per cent in September to 14.4 per cent in January 2023, exceeding the monthly average of 7.2 per cent from January 2022 to August 2022.

In contrast, the share of Singaporean purchases fell from 87.2% in September to 70.6% in January 2023.

Including EC projects, the top sellers in January were Sceneca Residence (launched last month), Tenet, Leedon Green, Klimt Cairnhill, One Holland Village Residences, Riviere, Haus on Handy and Perfect Ten.

The "super rich" were said to be behind some of the purchases in Klimt Cairnhill in January, when 14 of the 17 units sold were purchased by foreigners, 15 of which were large flats (square footage) over 2,000 square feet in size.

High value units continued to sell elsewhere in January.

The figures show that 28 new non-landed homes were sold last month for at least S$5 million; two units traded for more than S$10 million.

These were the 4,661 sq ft unit at Dalvey Haus, which sold for S$16.28 million or S$3,493 per sq ft, and the 3,272 sq ft unit at Midtown Modern, which sold for S$14 million or S$4,278 per sq ft.

Excluding EC, transactions outside the Central Region accounted for the majority of last month's transactions - 47.3 per cent of sales of 185 units or new units.

Another 40 per cent of sales or 158 units came from the core Central region and the remaining 12.3 per cent or 48 units were sold in projects elsewhere in the Central region.

Prices for private homes are forecast to rise by 8% this year, a lower increase than last year, despite an increase in the number of new launches later in 2023. New home sales are expected to range between 8,500 and 10,000 units.

Including EC, new home sales in January 2023 fell 13.8 per cent to 550 units from 638 units last month.