September New Home Sales Dip, But Market Gears Up for October Surge

Private home sales fell sharply in September, with developers moving just 255 units (excluding executive condominiums). This marks an 88.1% drop from August and a 36.4% decline compared to the same period last year. The slowdown wasn’t surprising, as it coincided with the Hungry Ghost Festival — a traditional lull period for property launches and transactions.

Only 20 new units were launched during the entire month, contributing to the lowest sales volume since end-2023.

Signs of Pent-Up Demand

Despite the slow month, analysts remain upbeat. The near sell-out of Skye at Holland — 99% sold at an average of S$2,953 psf — shortly after the Hungry Ghost Festival ended shows buyers are still ready to act when the right product comes along.

ERA CEO Marcus Chu noted that 7,924 new units have already been sold between January and September 2025, surpassing the full-year totals of 2022 (7,099 units) and 2023 (6,421 units). Even with the quiet September, Q3 new home sales reached 3,337 units — nearly triple Q2’s 1,212 units.

Big Launches Ahead in October

Analysts expect a strong rebound, with at least four major projects launching this month — Faber Residence, Penrith, Zyon Grand, and Skye at Holland (already launched). Together, they could add over 2,200 units to the market.

Faber Residence (Clementi, by GuocoLand) and Penrith (Queenstown, by Hong Leong Holdings) will launch on Oct 18, while CDL’s Zyon Grand at River Valley will follow on Oct 25. Early cheque collection suggests strong sales are likely.

Why the Market Is Still Resilient

Lower borrowing rates and better-than-expected economic performance are helping buyer sentiment. The 3-month SORA rate is around 1.4% — the lowest since August 2022 — improving affordability for buyers.

CBRE expects private home prices to rise by 3–4% this year, possibly matching or exceeding the 3.9% gain in 2024. PropNex believes some buyers are entering the market early, anticipating higher prices in 2026 due to increased land costs.

Core Central Region (CCR) Recovery

Sales in the CCR surged to 916 units in Q3, up from just 46 in Q2. However, price growth in CCR has lagged behind RCR and OCR over the past five years — up just 27%, compared to 47% in RCR and 46% in OCR.

Knight Frank notes this price gap presents value opportunities in CCR, especially for freehold developments that offer capital preservation and long-term legacy planning.

Top Projects in September

• Canberra Crescent Residences (D27): 28 units sold; over 60% sold since August launch; median S$2,001 psf

• Grand Dunman (RCR): 24 units sold; median S$2,508 psf

• River Green (CCR): 16 units sold; median S$3,201 psf

Singaporeans made up 85.5% of September’s buyers, with PRs accounting for 8.6%. Including ECs, 270 new homes were sold.

Looking Ahead

Despite the temporary dip, 2025 is shaping up to be a strong year. Most analysts now forecast that developers will clear at least 9,000 units by year-end — the highest annual sales since 2021.