New launches, lower rates drive January home sales surge: analysts

For the remainder of 2025, market watchers expect steady demand as interest rates ease and new launches hit the market. 

The Singapore private home market saw a remarkable resurgence in January 2025, with new home sales soaring more than fivefold compared to the previous month.

According to URA data, 1,083 new private homes (excluding ECs) were sold, a 433.5% surge from the 203 units in December 2024.

This represents the strongest January performance since 2021 when 1,633 units were transacted.

"Buying sentiment has improved substantially since the tail-end of 2024, with the moderation in interest rates and influx of new launches being the key catalyst for sales," said Wong Siew Ying, Head of Research & Content at PropNex Realty​.

The strong performance was largely driven by The Orie, a new project near Braddell MRT station that sold 680 out of its 777 units at a median price of $2,731 psf.

Another project that contributed significantly to the January surge was Bagnall Haus, which moved 75 units at a median price of $2,494 psf.

The sales growth also reflects shifting preferences among homebuyers. "The demand for new private homes remained strong, supported by lower mortgage rates after the recent interest rate cuts," OrangeTee said

Looking ahead, upcoming launches are expected to sustain the sales momentum. "The 501-unit ELTA in Clementi Avenue 1 drew more than 4,500 visitors during its preview, while the 1,193-unit Parktown Residence in Tampines saw over 10,000 visitors in just three days," Wong said.

Meanwhile, CBRE said the surge in January home sales demonstrates that buyers remain confident about Singapore’s long-term prospects, particularly for well-located projects with competitive pricing.

Whilst January's figures signal renewed optimism, analysts caution against overly bullish expectations.

For the remainder of 2025, market watchers expect steady demand as interest rates ease and new launches hit the market.