New private home sales hit a seven-month high in April
In April, there was a significant surge in new private home sales, reaching a seven-month high. This boost was primarily driven by the strong demand for two major projects located on the outskirts of the city. Interestingly, one of these projects was launched just days after unexpected property cooling measures were implemented on April 27.
The sales of new private homes, excluding executive condominiums (ECs), witnessed an impressive 80.3% increase, rising from 492 units in March to 887 units in April. This performance marked the strongest monthly result since September 2022 when 987 new homes were sold.
Tembusu Grand in Tanjong Katong and Blossoms by the Park in Buona Vista were the two prominent launches contributing to 63% of the total private home sales in April. Among its 638 units, Tembusu Grand managed to sell 354 units at a median price of $2,463 per square foot (psf), while Blossoms by the Park sold 205 out of its 275 units at $2,427 psf.
Compared to April 2022, there was a notable 34.2% increase in sales, with 661 units sold during that period. This data was released by the Urban Redevelopment Authority on Monday.
In April, a total of 779 units were launched for sale, reflecting an almost 36% increase from the previous month and a significant 96.2% increase compared to the same period a year ago. When including executive condominiums (ECs), the total sales in April experienced a substantial 77.2% jump to 909 units, surpassing the 513 units sold in March. Additionally, this represented a 7.3% increase from the 847 units sold in April of the previous year. Notably, no ECs were launched in April.
Among the sub-markets, the city fringe performed exceptionally well in April, with Tembusu Grand and Blossoms by the Park accounting for 89% or 559 units of the total 628 units sold in the city fringe area.
Some experts believe that the new cooling measures might not deter local buyers, particularly first-time buyers who are unaffected by the higher additional buyer’s stamp duty (ABSD) rates. In fact, certain buyers anticipate further price increases if interest rates stabilize and employment remains stable.
Analysts suggest that the strong momentum in new home sales may continue in May, supported by the introduction of two more city fringe projects. These include The Continuum, an 816-unit freehold condominium located in Thiam Siew Avenue off Tanjong Katong Road, and The Reserve Residences, a 732-unit integrated development in Jalan Anak Bukit, which opened for preview last Saturday and attracted nearly 6,000 visitors.