Integrated projects, strategic pricing fuel February’s private home sales: analysts

Developers sold 1,575 new private homes, a 45% increase from January and more than ten times higher than February 2024.

Singapore’s new private home sales surged in February 2025, with mass-market properties in the Outside Central Region (OCR) accounting for 92% of all transactions, according to the Urban Redevelopment Authority (URA).

Analysts from PropNex, CBRE, Huttons, and OrangeTee & Tie attributed the strong performance to buyers’ preference for integrated developments, strategic pricing, and limited land supply in key suburban areas.

Developers sold 1,575 new private homes (excluding Executive Condominiums, ECs), marking a 45% increase from January and more than ten times higher than February 2024.

The strong demand for OCR projects pushed new home sales to their highest level in nine years, with 1,452 units sold in this segment.

“Brisk sales at Parktown Residence and ELTA have supercharged new home sales in February, extending the trend of healthy take-up rates at many new launches since November 2024,” said Wong Siew Ying, Head of Research & Content, PropNex Realty.

PropNex also highlighted that developers were able to price units at attractive levels despite rising construction costs.

“Quantum play will remain a key pricing strategy for developers, and a price range of between $1.5m and $2.5m appears to be a pricing sweet spot that many owner-occupiers are relatively comfortable with,” Wong said​.

Parktown Residence, an integrated development in Tampines North, was the best-selling project of the month, moving 1,041 units at a median price of $2,363 per square foot (psf).

CBRE analysts emphasised the appeal of integrated developments, stating that they offer buyers the convenience of living near transport, retail, and lifestyle amenities.

However, CBRE also pointed out that sales in the Core Central Region remained muted, as high Additional Buyer’s Stamp Duty (ABSD) continues to weigh on foreign buyers and investors​.

Huttons analysts noted that February’s performance contributed to the strongest Q1 sales since 2013, with 2,658 units transacted in the first two months of the year.

“The strong demand in the past few months is supported by fundamentals such as a sharp rise in wealth and cuts in interest rates,” Huttons noted.

Huttons also highlighted the scarcity of future private housing supply in Clementi, which contributed to the strong performance of ELTA.

“ELTA is the last parcel of land for condo development along Clementi Avenue 1. Buyers recognised the limited supply and were eager to buy a unit in ELTA for potential capital appreciation,” Huttons said​.

A record 603 suburban homes were sold for at least $2m, marking the highest monthly total ever recorded.

OrangTee said government infrastructure projects in Tampines North and Paya Lebar will further drive demand, with private home prices expected to rise by 2-4% in 2025.

Analysts from all four firms agree that mass-market homes will continue leading sales in 2025, whilst the luxury market faces slower demand due to ABSD restrictions on foreign buyers.

OCR properties are expected to remain in high demand, particularly in areas with limited land supply like Clementi and Tampines. Meanwhile, developers are expected to continue pricing projects strategically to appeal to homebuyers amid high interest rates and cautious market sentiment.