Developers sold 432 new homes in February 2023, excluding executive condominiums (ECs), according to data released by the URA on March 15. This was 9.9 per cent higher than the 393 units sold the previous month.

However, it was 20.3 per cent lower than February 2022 sales and 28 per cent lower than the average February sales over the past five years.

This may be largely due to buyers waiting to choose between more projects to be launched in the coming months, or they may still be watching the market dynamics.

Nevertheless, this marks the second consecutive month of improved market performance, following the 130% year-on-year surge recorded in January.

The sales performance was encouraging considering that only one mid-sized and smaller project was launched in February and that buyers faced challenges such as high interest rates and cooling measures.

Developers released 401 new homes in February, unchanged from the 410 units released in January. New projects launched last month were Terra Hill, a 270-unit freehold project by Hoi Hup and Sunway Developments on Yiu Cheung Road; and Gems Ville, a 24-unit freehold boutique development at 13 Geylang Loong. The rest of the homes for sale are from projects under construction, with Pullman Residences Newton, Jervois Prive and Leedon Green releasing more units to the market.

The increase in Buyer's Stamp Duty (BSD) announced by the government in February does not seem to have deterred buyers from purchasing properties. Terra Hill, launched after the budget announcement, was the best-selling development of the month with 97 units sold at a median price of $2,699 per sq ft. The development, located in the Rest of Central Region (RCR), contributed 22% of new private residential sales last month.

However, half of the developer's sales in February were driven by projects in the Core Central Region (CCR). 222 private homes were sold in the CCR, more than double the 107 posted by the CCR last month. It also marked a 40.5 per cent year-on-year increase in new home sales in the CCR.

Seven of the ten best performing projects in February were freehold projects in the Core Central Region (CCR). This includes Pullman Residences Newton, which sold 38 units at a median price of $3,171 per sq ft, and Leedon Green, which sold 21 units at a median price of $2,943 per sq ft. This indicates that buyers are seeing value in the CCR as the price gap between new launches in the RCR and CCR narrows.

CCR new home sales are also likely to be bolstered by investors putting money into freehold assets to preserve wealth amid heightened market uncertainty.

The number of new homes purchased by foreigners also remained stable last month, with 54 new homes purchased by non-permanent residents, compared to 53 in January. This is the highest monthly sales to foreigners since June 2022. Most foreigners purchased luxury homes last month, with 35 new condominiums purchased at CCR.

Looking ahead, March's sales should be supported by the new development The Botany at Dairy Farm, Sim Lian Group's 386-unit project at Dairy Farm Walk. Over 48% of the units were sold on launch weekend at an average price of $2,070 per square foot.

In addition, other upcoming projects are expected to drive new home sales momentum in the coming months. Upcoming projects in the next two months include EL Development's Blossoms by the Park at Slim Barracks Rise; City Developments and MCL Land's Tembusu Grand on Jalan Tembusu; Hoi Hup and Sunrise at Thiam Siew Avenue. The Continuum by Hoi Hup and Sunway Developments on Thiam Siew Avenue; and The Reserve Residences at Jalan Anak Bukit, a joint venture between Far East Organization and Sino Group.