First condo launches in Tengah and Bayshore ignite April jump in new private home sales

This year’s best performer to date is Tengah Garden Residences, which sold 99.1 per cent or 855 units of its 863-unit project within the launch month.SINGAPORE – New private home sales jumped to a six-month high in April, powered by low interest rates and demand for two new mass-market launches – Tengah Garden Residences in Tengah and Vela Bay in Bayshore – the first private condo projects launched in the new housing precincts.Developers moved 1,548 new homes, excluding executive condominiums (ECs), in April, up 19 per cent from 1,300 in March and more than double that of 675 units in April 2025, according to data released on May 15 by the Urban Redevelopment Authority.In the first four months of 2026, developers transacted a total of 3,561 new units excluding ECs, down 12 per cent from 4,050 units moved over the same period in 2025.Despite the rocky start to 2026 due to the Middle East conflict and economic uncertainty, home-buying appetite has remained resilient, supported by low mortgage rates and a pipeline of attractive new launches, noted Tricia Song, CBRE head of research for Singapore and South-east Asia.But sales could ease in May, when only one major project – the 325-unit Hudson Place Residences in one-north – will be launched. In the third quarter, however, sales could pick up when Lentor Garden Residences and Dunearn House hit the market.That said, downside risks from a protracted Middle East conflict, a global downturn as well as inflation concerns may cause home buyers to turn cautious, Ms Song added.Potential mortgage rate hikes in the next few months, if any, are not expected to be significant, with current rates still considered low, compared with 2023’s three-month compounded Singapore Overnight Rate Average (SORA) of more than 3.6 per cent. Banks use SORA to price home loan packages.This should keep housing affordable for first-time buyers and HDB upgraders, said Ms Christine Sun, chief researcher and strategist of Realion (OrangeTee & ETC) Group.She noted that the number of suburban new homes launched hit a 14-month high at 1,406 units out of a total of 1,426 new units launched for sale last month, with Tengah Garden Residences and Vela Bay accounting for 79 per cent of the overall new home sales in April. In March, developers launched 1,043 units.This year’s best performer to date is Tengah Garden Residences, which sold 99.1 per cent or 855 units of its 863-unit project within the launch month at a median price of $2,111 psf.Analysts cited demand from upgraders and first-time home buyers due to confidence in the precinct’s growth potential and the project’s proximity to the upcoming Hong Kah MRT station on the Jurong Region Line.“Buyers were motivated by first-mover considerations, as later projects tend to price higher as development plans unfold in Tengah, and as land and construction costs continue to rise,” said ERA Singapore chief executive Marcus Chu.Vela Bay was the second-best performer, moving 370 units or 72 per cent of its 515-unit project at a median price of $2,865 psf, setting a new price benchmark for a suburban launch, according to CBRE.Located next to the Bayshore MRT station, the project saw healthy pent-up demand as it has been nearly 10 years since the 841-unit Seaside Residences was launched in 2017.The third best-selling project was Rivelle Tampines EC, which sold 76 units at a median price of $1,918 psf in April, when sales booking opened to more second-timer buyers after the lapse of the priority period for first-time buyers, according to PropNex.The market is also eyeing five upcoming EC projects that do not come under the new measures that will apply to all EC government land sales (GLS) sites with tender closing dates on or after May 8.The measures include extending the minimum occupation period to 10 years, up from five now. To encourage financial prudence, developers can no longer offer the deferred payment scheme (DPS), which allows EC buyers to pay 20 per cent of the purchase price upfront, with the remaining 80 per cent deferred until the project obtains its temporary occupation permit.From May 8, the normal payment scheme, where progressive payments are made based on construction milestones, will apply to all EC buyers.To improve the chances of first-time buyers securing ECs, developers must reserve 90 per cent of EC units for such buyers, up from 70 per cent, and extend the priority period from one month to two years.These new rules do not apply to the projects located on five EC GLS sites – two at Woodlands Drive 17 and the remaining three at Senja Close, Sembawang Road and Miltonia Close, as their state tenders were awarded before May 8.Three EC projects at Senja Close, Sembawang Road and Woodlands Drive 17 are set to launch for sale by year end, Mr Chu said.“As these sites remain under previous regulations, the availability of the DPS and the one-month priority window should anchor strong interest among second-timers,” he added.Source: The Straits Times © SPH Media Limited. Permission required for reproductionDiscover how to enjoy other premium articles here