The launch of two major developments, The Orie in Toa Payoh and Bagnall Haus in Upper East Coast Road, along with lower mortgage rates, fueled a sharp recovery in private home sales in January.
According to data from the Urban Redevelopment Authority on Feb 17, new home sales—excluding executive condominiums (ECs)—soared more than fivefold to 1,083 units from just 203 units in December 2024.
This marks a 256 per cent increase compared to the previous year and is the highest January sales figure since 2021, when 1,633 units were sold.
When including ECs, overall new home sales surged 196 per cent, reaching 1,104 units in January, up from 373 units in December.
The introduction of the 777-unit The Orie and the 113-unit Bagnall Haus just before the Chinese New Year holidays drove new launch sales to 896 units in January, a significant jump from just 20 units in December and a 115 per cent rise from 417 units a year prior.
Together, these two projects contributed to 69.7 per cent—or 755 units—of total new home sales in January. Notably, no new EC units were launched during the month.
With interest rates stabilizing, buyer interest rebounded in the final quarter of 2024. Developers are expected to launch between 12,000 and 14,000 new units in 2025—nearly double the 6,647 units released in 2024, according to Ms Tricia Song, head of research for Singapore and Southeast Asia at CBRE.
Ms Christine Sun, chief researcher and strategist at OrangeTee Group, highlighted that 87.5 per cent of The Orie’s units were snapped up in January. The strong demand stems from it being the first Toa Payoh launch in nine years, following Gem Residences in 2016.
She also noted that the area is poised for further growth, with enhancements such as the Toa Payoh Integrated Development set to be completed by 2030.
Meanwhile, the existing launch One Bernam in Tanjong Pagar saw 99 units sold in mid-January after a price reduction of up to 27 per cent in a fire sale, analysts said.
The median price of Tanjong Pagar condos dropped to $2,521 per square foot (psf) in January, down from $2,803 psf in December and $2,691 psf in November, according to Mr Leonard Tay, head of research at Knight Frank Singapore.
ERA Singapore chief executive Marcus Chu pointed out that while city-fringe launches like The Orie reached a median price of $2,731 psf, One Bernam appeared to be an undervalued prime district project.
He noted that One Bernam’s median price of $2,521 psf was only slightly above its $2,471 psf launch price from May 2021, making it an attractive entry point for investors. The project’s competitive pricing helped position it as a value buy, particularly as the price gap between prime district and city-fringe developments continues to narrow.
Bagnall Haus, the third-best performing launch in January, sold 75 out of its 113 units at a median price of $2,494 psf within the month.
Key selling points for the project include its competitive pricing for a freehold property and its proximity to the upcoming Sungei Bedok MRT station, which will serve as an interchange for the Downtown and Thomson-East Coast lines, Ms Song said.
In contrast, EC sales declined significantly, falling to just 21 units in January from 170 in December due to a lack of new EC launches.
A tight supply of unsold EC stock—only 148 units remained unsold as of the end of January—could work in favor of the upcoming 760-unit Altura EC launch in Tampines, according to PropNex.
Looking ahead, suburban home sales are expected to rise in February with the launch of two new developments: the 501-unit Elta in Clementi Avenue 1 and the 1,193-unit Parktown Residence in Tampines, set to hit the market on Feb 22.
Elta’s preview alone drew over 4,500 visitors, while Parktown, an integrated development, attracted more than 10,000 visitors within its first three days of public preview, according to Ms Wong Siew Ying, head of research and content at PropNex.
With over 1,000 new homes (excluding ECs) already sold in January and additional sales anticipated in February and March, developers’ first-quarter sales in 2025 are on track to surpass those of the past three years. In each of those years, fewer than 2,000 new homes were sold, Ms Wong added.
Credits: The Straits Times
