Singapore’s condo market has awakened from its slumber, posting impressive July numbers that caught even seasoned analysts off guard. With 940 units flying off the market in a single month, developers are scrambling to keep pace with unexpected buyer enthusiasm. Four major launches dominated the scene, capturing an overwhelming 70% of total sales volume. However, beneath these encouraging headlines lies a brewing storm of rising costs that could reshape the entire landscape.
July Sales Break Five-Month Records With 940 Units Sold
The Singapore condominium market experienced a remarkable surge in July, with developers achieving their strongest sales performance in five months by moving 940 units excluding executive condominiums. This represents a dramatic threefold increase from June’s modest 272 units, showcasing impressive historical growth that outpaced July 2024’s 576 units by 63%. Four major new project launches dominated the landscape, capturing roughly 70% of monthly sales activity. The robust performance reflects stable buyer demographics, with local purchasers continuing to drive demand across price segments, particularly units priced below $2.5 million, signaling sustained market confidence. The government’s response through the GLS Programme for 2H2023 aims to sustain this momentum by offering 5,160 units, marking the highest supply release in a decade to meet the surging demand.
New Project Launches Drive Market Momentum Across All Regions
Four strategic new launches emerged as the driving force behind July’s exceptional market performance, with LyndenWoods, The Robertson Opus, UpperHouse at Orchard Boulevard, and W Residence Marina View collectively capturing approximately 70% of the month’s total sales volume. These developments strategically positioned themselves across different price segments, offering luxury amenities that attracted diverse buyer profiles seeking investment diversification opportunities. LyndenWoods dominated with 331 units sold at $2,463 per square foot, while premium CCR projects like UpperHouse and The Robertson Opus commanded higher prices exceeding $3,200 per square foot, demonstrating healthy demand across all regional markets. Meanwhile, the landed property market continues to attract ultra-high-net-worth investors, with exclusive developments like Anagram Homes on Kheam Hock Road offering detached houses priced up to $24.7 million in prestigious District 11.
CCR Achieves Four-Year High While RCR Maintains Strong Leadership
Regional market dynamics shifted dramatically in July, with the Core Central Region achieving its strongest monthly performance since April 2021 while the Rest of Central Region continued to demonstrate its dominance in overall sales volume. CCR recorded an impressive 357 units sold, driven by luxury developments like UpperHouse at Orchard Boulevard and The Robertson Opus, which commanded premium prices of $3,259 and $3,359 per square foot respectively. Meanwhile, RCR maintained its leadership position with 513 units sold, led by LyndenWoods’ exceptional performance. Buyer demographics revealed strong local interest, with Singaporeans and permanent residents comprising 98% of CCR transactions. As property investments remain a key component of wealth building, Singapore’s CPF retirement planning continues to evolve with the Enhanced Retirement Sum increasing to $426,000 for the 2025 cohort.
Affordable Pricing Strategy Keeps Units Under $2.5 Million in High Demand
Despite premium locations commanding top-dollar prices, developers strategically positioned a significant portion of their inventory below the $2.5 million threshold, capturing broad-based demand across Singapore’s condo market. This approach proved remarkably effective, with LyndenWoods achieving 73% of sales under this price point, demonstrating that affordability remains essential even in the luxury segment.
| Project | Units Below $2.5M | Total Sales Performance |
|———|——————-|————————|
| LyndenWoods | 73% of units | 331 units, 97% take-up |
| The Robertson Opus | 38% of units | 149 units sold |
| UpperHouse | 57% of units | 178 units sold |
While foreign investment remained minimal at 2%, local buyers embraced these competitively priced offerings. Many buyers who have previously utilized their housing subsidies for HDB flats or Executive Condominiums now turn to the private condo market, as second timers face restrictions on additional grants and must pay resale levies for further subsidised housing purchases.
Rising Construction Costs and Land Prices Challenge Future Competitiveness
While developers have successfully captured buyer interest through competitive pricing strategies, escalating land costs and rising construction expenses threaten to undermine their ability to maintain the affordable positioning that has driven recent sales momentum. These mounting pressures squeeze developer profit margins, forcing difficult decisions between maintaining competitive prices and preserving profitability. The challenge becomes particularly acute for projects targeting the popular sub-$2.5 million segment, where buyers have shown strongest demand. Additionally, higher development costs could impact on rental yields for investors, potentially dampening future investment interest and creating ripple effects throughout the market’s recovery trajectory. For buyers aged 55 and above, the requirement to set aside the Full Retirement Sum when purchasing property adds another layer of financial consideration to their condo investment decisions.
