January 2025 Monthly Developer Sales: Commentary by ERA

SINGAPORE, 17 February 2025 – URA has released the January Developer Sales report. Compared to the lukewarm performance in December, which saw only 203 new homes sold, January saw new home sales momentum pick up again following the launches of two projects- The Orie and Bagnall Haus.

In total, 1,083 new homes were sold in January, marking more than fourfold increase month-on-month and 256% change year-on-year (y-o-y). The staggering increase was due to the December seasonal lull and strong buyer activity seen at The Orie and Bagnall Hause.

The three top performing projects, as mentioned were The Orie (RCR, 680 units sold), One Bernam (CCR, 99 units sold), and Bagnall Haus (OCR, 75 units sold) – one for each market segment.

“The Orie, being the first Toa Payoh launch since 2016, sold 680, or  88% of its units in the month, for a median price of $2,731 psf, with some 1 and 2-bedroom units on higher floor breaking through the $3,000 psf price point. The strong performance was expected due to pent-up demand in Toa Payoh, coupled with the limited availability of plots in the area. Majority of the buyers were Singaporeans who grew up in this area and were look for their next home.” said Marcus Chu, CEO, ERA Singapore.

“One Bernam saw some 99 units sold in January. The median sale price of $2,521 psf was just a notch higher than the project’s launched price in May 2021 (median $2,471 psf), providing an attractive entry price point for a CCR project. With recent RCR launches like The Orie reaching a median price of $2,731 psf, One Bernam stood out as an undervalued CCR project. Its competitive pricing attracted investors, positioning it as an appealing CCR value buy amid the narrowing CCR-RCR price gap.”

“Bagnall Haus, a small freehold condo in D16, which sold 75 of its 113 units for a median price of $2,494 psf within its launch month. Some 52 units were transacted below the $2.5m price quantum, making it an attractive product for homebuyers seeking a FH property. On top of that, its prime location near Sungei Bedok MRT adds to its appeal, checking many boxes for discerning buyers.”

“January clocked in just 21 Executive Condo (EC) sales, with no new EC launches. As at Jan, there are only some 148 units of EC units remain unsold and buyers are slowly snapping up the balance stock.”

Continuing the trend from December, Hillock Green also performed well, transacting 21 units at $2,253 psf. It has consistently performed as a best-seller in 2024, with its attractive pricing compared to the benchmark prices being set islandwide by recent new launches, and its family friendly layouts. Lentor’s supply of new home has been dwindling but the launch of Lentor Central Residences is set to inject fresh options into the market.

“In the primary market, luxury properties priced at $5 million and above saw just two transactions in January. Notably, both deals were from Park Nova, a luxury freehold development on Orchard Boulevard, and were above the $15 million mark. According to caveats, the 2,906 sqft four-bedroom unit was sold to a foreigner at $16.6M ($5,708 psf), which will likely incur an ABSD of 60%. Meanwhile the 5,898 sqft penthouse acquired by a PR for a remarkable $38.9M ($6,593 psf).”

In the latter half of 2024, we saw interest rate cuts and more positive economic sentiment revitalising the new home market. Collectively, with Singapore’s firm economic fundamentals, buyers remain confident in the resilience of the residential market, which could help weather global headwinds and bolster new home sales in recent months.

In February, we are likely to see the launch of more highly anticipated projects such as Aurea, ELTA, and Parktown Residence. In particular, projects like ELTA and Parktown Residence are within popular housing estates like Clementi and Tampines and will draw strong interest from HDB upgraders in the vicinity. We can expect to see a continued sales momentum of the primary market. With this, ERA projects new home sales possibly reaching between 7,000 and 8,000 units in 2025.