SINGAPORE - Even with no major launches, developers sold more new private homes last month than in February, thanks to the easing of safe management measures and restrictions on viewing show-flats.

Buyers snapped up 654 new private homes, up 20.7 per cent from 542 in February, according to Urban Redevelopment Authority (URA) data released on Monday (April 18).

But transactions plunged nearly 50 cent from 1,296 units a year ago as developers held off launching new projects following the latest round of cooling measures, analysts said.

Developers rolled out 309 new homes last month, up 58.5 per cent from 195 in February. But the volume of new units launched was down 67.8 per cent from 959 units a year earlier.

Preliminary data showed that new private residential sales in the first quarter softened considerably after the new property curbs.

According to JLL, 682 private residential units were launched for sale in the first quarter, down 81.6 per cent from a year ago, while transactions showed a 46.2 per cent drop to 1,880 units sold.

"The number of new private homes launched in 1Q22 was particularly weak, the lowest since 506 units were launched in the first quarter of 2003, and also lower than the 706 units placed in the fourth quarter of 2008 during the global financial crisis," said Mr Ong Teck Hui, senior director of research and consultancy at JLL.

"Due to the uncertain market after the new cooling measures, launches were withheld in the first quarter because demand was expected to be less forthcoming," he added.

But demand could pick up in the second half of this year, when new launches such as the 407-unit Piccadilly Grand and 298-unit LIV @ MB hit the market, and if the pricing is competitive, he said.

The 616-unit North Gaia executive condominium (EC), the first new EC launch this year and the first EC in Yishun in seven years, could see strong pent-up demand, said CBRE head of research for South-east Asia Tricia Song.

Meanwhile, the slight uptick in March new home sales is encouraging, in the light of heightened uncertainties caused by the Russia-Ukraine conflict, which has also added to cost of living pressures in Singapore, said Ms Wong Siew Ying, head of research and content at PropNex Realty.

Including ECs, new private home sales rose 22.3 per cent to 702 units in March, from 574 units in February, but are down nearly 49 per cent from a year ago.

Pricier condominiums are forming a bigger proportion of transactions, according to OrangeTee & Tie. Based on URA's Realis data, 75.9 per cent of the non-landed transactions (excluding ECs) were at least $1.5 million, of which 41.6 per cent were sold for at least $2 million in the first quarter.

"The upward adjustment of mortgage rates seems to be spurring more buyers to return to the market. Some buyers plan to lock in home loan rates before they climb higher," noted Ms Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie.

In the absence of new launches, buyers turned to existing projects, propping up prices in the city fringe and suburbs, Ms Wong said.

New home prices in the city fringe area gained 4.8 per cent month on month to $1.86 million, while those in the suburbs rose 5.7 per cent month on month to $1.75 million.

But prices in the prime districts fell by 4.9 per cent month on month to $2.24 million in March, PropNex said.

Mr Mohan Sandrasegeran, a research and content analyst at Ohmyhome, said the higher additional buyer's stamp duty rates for foreign buyers and investors pared new home sales to this group by nearly 48 per cent, to 81 units in the first quarter, from 155 units in the fourth quarter last year.

"Foreigners are taking a cautious approach. Some may have shifted their interest to the rental market," he added.