_Knight Frank Commentary (Monthly Developer Sales - February 2025)

Demand for private homes that started in the final quarter of 2024 continued to be sustained in early 2025. There were 1,575 developer sales (excluding executive condominiums (ECs)) in February 2025, exceeding the 1,083 sales in the previous month of January by 45.4%. It is just two months into the new year and a total of 2,658 new sales (excluding ECs) have been recorded in January and February 2025. In comparison, it took eight months from January to August in 2024 to reach a total of 2,714 units, based on monthly developer sales data with just 2,503 units sold from January to July 2024. Sales at new project launches at Parktown Residence in Tampines (1,041 units or 87% of the project total) and Elta in Clementi (326 units or 65% of the project total) led the developer sales in February, accounting for 86.8% of the total developer sales (excluding ECs) in February. Additionally, two projects, One Bernam and Copen Grand EC sold the last of their respective projects’ units during the month.

Sales in 2025 at new launches continued to be sustained largely by Singaporean buyers, new citizens and permanent residents, as this momentum was also evident in March 2025 with reports of strong take up at Lentor Central Residences and the EC, Aurelle of Tampines. With interest rates less than what it was a year ago, homebuyers are picking up new homes at showflats, especially as interest rates are now expected not to fall further. This positive momentum was met with prominent launches in established residential towns where there are ample amenities, or else, in areas with a compelling growth story such as Tengah. Homebuyer demand remains supported by strong household balance sheets that are on a steady path of improving affluence, a low unemployment rate, and liquid wealth that is passed down from earlier generations of Singaporeans that have benefitted from asset appreciation.

Knight Frank projects that non-landed new sales volume would likely range between 7,000 and 9,000 in 2025, with overall non-landed home transactions from 19,000 to 23,000, so long as the government does not announce anymore punitive measures to curb homebuyer demand. After all, private residential price growth stabilised to a moderate 3.9% in 2024, after having chalked up increases of 6.8% in 2023, 8.6% in 2022 and 10.6% in 2021. Imbued with cautious optimism, 2025 is on track to be a more active year for the private home market despite the prevailing uncertainties on the global stage. Prices are likely to grow between 3% and 5%, with the growth supported by moderate-to-healthy take-up rates at new launches throughout the year. However, not all projects launched in the coming months will perform equally well. Homebuyer demand will largely be dependent on the specific location and property attributes of each specific new project launch, with some projects doing better than others.