Singapore Home Sales Slip 27% to Lowest in Three Months as Launch Schedule Slows

New private home sales in Singapore fell 27 percent in May to their lowest level in three months, according to data released by the Urban Redevelopment Authority on Tuesday.

Excluding executive condos, sales dipped from 301 units in April to 221 last month, marking the lowest sales total for new homes in the month of May since 2008. On a year-on-year basis, home sales excluding ECs plunged 79 percent from 1,039 units in May 2023.

Limited housing options muted last month’s figures as no large projects were launched in the lower-priced suburbs and city fringes, said Christine Sun, chief researcher and strategist at OrangeTee Group.

“Only two small projects were launched in the suburbs last month: the 21-unit Jansen House, which sold only three units, and the 16-unit Straits at Joo Chiat which moved two units,” Sun said in a release.

Quarterly Slump

With 522 units sold in April and May and no major launches expected in June, developers’ second-quarter sales look certain to fall short of the 1,164 units sold in the first quarter and the 2,127 units shifted in the year-ago quarter, according to PropNex Realty.

Aside from the two boutique suburban developments, last month saw the launch of a 190-unit luxury project, Skywaters Residences, in Tanjong Pagar. A single 7,761 square foot (721 square metre) unit on the 57th floor of the development at 8 Shenton Way, a joint venture of Alibaba and Perennial Holdings, sold for S$47.3 million ($35 million) or S$6,100 per square foot.

The price per unit of area set a record for a new non-landed private residential project on a 99-year leasehold, said PropNex research head Wong Siew Ying. She noted that the high-end development on the former AXA Tower site is above the budget of most Singapore residents.

“Apart from the 533-unit Lentor Mansion which was launched in March, the new projects that came on thus far have been much smaller,” Wong said. “It is likely that many prospective homebuyers are waiting for more projects to be launched, so that they can make comparisons before deciding on their property purchase.”

Among existing projects, GuocoLand’s Lentor Hills Residences in Ang Mo Kio topped the table with 25 units sold in May at a median price of S$2,164 per square foot.

Quiet Phase Seen

Local housing appears to be in a quiet phase after the completion of almost 20,000 units last year and in the light of higher-for-longer interest rates, said Leonard Tay, head of research at Knight Frank Singapore.

“Buyers scouring the new home market will continue to take their time to identify the right project with attributes that will suit their lifestyle preferences,” Tay said.

At the start of 2024, Knight Frank projected primary sales volume to range from 7,000 to 9,000 units this year, but the current take-up indicates that the number might come in under 7,000.

“Sales volume is likely to remain subdued until such time as interest rates are cut, or perhaps if the government were to ease some of the cooling measures,” Tay said.