Why Home Sales in Singapore Slowed Sharply in March: An International Perspective
Determine which initiatives led to this outcome.
As stated by Wong Siew Ying, who leads Research & Content at PropNex Realty, the decreased new home sales (excluding construction) in March were primarily due to the absence of major initiatives being started during the period.
Together, the Aurea and Lentor Central Residences provide a combined total of 665 units, as opposed to the approximately 1,700 units offered by Parktown Residence and ELTA, which were introduced in February.
"Lentor Central Residences saw impressive sales after selling 96 percent of its units post-launch on March 8th. As a result, developer sales for the mass-market or OCR segment in Q1 2025 reached 2,256 new homes (excluding ECs). This figure marks the highest quarterly total in approximately 12 years, surpassing the 2,760 OCR units traded in Q2 2013," noted Wong.
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At the same time, Executive Condominiums (ECs) remain highly popular amongst potential purchasers, which is evident from the strong sales performance seen at Aurelle in Tampines. This development has established a fresh standard for transaction prices within the category of new ECs, with an average unit price reaching $1,766 per square foot upon release. Nonetheless, these properties still offer a more affordable option compared to many newly launched private condominiums, leading us to anticipate sustained interest in new ECs due primarily to their appeal to homebuyers intending to occupy them themselves.
After the significant boost in buyer confidence during Q4 2024 and Q1 2025, market uncertainty has risen sharply by early April due to the United States imposing extensive tariffs on various trading partners, which led to retaliatory measures from China. From that point onward, the circumstances have remained unpredictable, and we anticipate that ongoing global trade tensions will keep influencing investor attitudes.
Given that the real estate market relies heavily on sentiment, the negative impacts and unpredictability caused by the tariffs might affect investment choices regarding home purchases. On the other hand, we expect that individuals buying homes for personal use will likely remain less affected due to their longer-term perspective.
Even though there has been increased wariness and market volatility in recent weeks, we believe the sales and uptake rates for the two projects launched in April—Bloomsbury Residences (with 25% occupancy) and One Marina Gardens (at 38% uptake)—are rather encouraging. This indicates a notable degree of strength within the private residential property sector.
As these will be among the initial developments targeting the new residential areas in Media Circle and Marina South, we anticipate that transaction volumes will gradually increase as potential purchasers assess the changing fee landscape. Supported by Bloomsbury Residences and One Marina Gardens, we forecast that developer sales for April may remain consistent with those of March.