Staff Reporter
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Analysts said buyers remained selective amid price, interest-rate and employment concerns.
New private home sales nearly doubled in September as buyers returned after the Lunar Seventh Month and responded to price adjustments at existing projects.
Developers sold 296 homes excluding executive condominiums, up 93.5% from 153 units in August and 16.1% from 255 units a year earlier.
Analysts cautioned that the increase came from a low base after developers held back launches during the seasonal lull.
Realion Chief Researcher and Strategist Christine Sun said about two-thirds of September’s transactions occurred after 10 September, when the Lunar Seventh Month ended.
PropNex Head of Research and Content Wong Siew Ying said the recovery was supported mainly by previously launched projects. Apart from the 24 units sold at Amberwood at Holland, existing developments accounted for about 92% of September’s sales.
She said the figures demonstrated a steady base of demand but also showed that buyers had become more discerning about pricing, location and project attributes.
Terra Hill was the month’s best-selling project, moving 32 units at a median price of $2,209 psf. It was followed by The Sen with 25 units and Amberwood at Holland with 24.
CBRE Head of Research for Singapore and Southeast Asia Tricia Song said discounts of approximately 15% to 18% helped Terra Hill record its strongest monthly sales since its February 2023 launch. The project was about 92% sold by the end of September.
Wong said Terra Hill’s performance showed that buyers remained willing to enter the market when a project stood out on value. However, she described the price adjustments as project-specific rather than evidence of a broad change in new-home pricing.
The Rest of Central Region accounted for 131 units, or about 44% of September’s sales. The Outside Central Region contributed 125 units, whilst the Core Central Region recorded 40.
New launches received a more measured response. Amberwood at Holland sold 24 of the 70 units released during its initial phase at a median price of $3,021 psf.
Huttons Asia CEO Mark Yip said the development’s larger units appealed to families, but the higher purchase amounts limited its potential buyer pool. More than 60% of its September sales involved four- and five-bedroom units.
Huttons also highlighted the sale of 19 landed homes during the month, the highest monthly figure since April 2018.
Yip attributed the increase to wealth accumulation among Singapore households and a narrowing price premium between new and resale terrace homes.
Despite the September recovery, analysts said affordability and economic uncertainty would continue to shape demand.
Song said high price points, fewer launches, global uncertainty and interest-rate concerns had made buyers increasingly selective.
Knight Frank Singapore Head of Research Leonard Tay said higher borrowing costs, rising retrenchments and uncertainty over the employment impact of artificial intelligence could make households more cautious about taking on long-term mortgages.
Land costs could add further pressure. Knight Frank estimated that the average land rate for non-landed residential government sites increased about 21% over the latest 12-month period compared with the preceding year.
Tay said this could make projects launched in 2026 appear relatively attractive against future developments built on more expensive land.
Sales are expected to strengthen in the fourth quarter as new supply enters the market.
Lucerne Grand sold 350 of its 570 units during its launch weekend in early October, whilst the upcoming 1,268-unit Thomson Reserve will provide a broader test of buyers’ appetite and pricing limits.
Full-year projections range from 6,500 to 8,000 units. Knight Frank expects between 6,500 and 7,500 sales, CBRE forecasts 7,500 to 8,000, and Huttons projects approximately 7,000.
Analysts broadly expect the market to remain supported by household wealth and low unemployment, but said project pricing would determine whether developers can convert buyer interest into sales.
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