Singapore Home Sales Show Recovery Signs as Fresh Launches Stir Interest

New private home sales in Singapore more than doubled in July compared with June figures to reach their highest level in four months, according to data released by the Urban Redevelopment Authority on Thursday.

Developers sold 571 new homes last month (excluding executive condos), up from 228 in June and a three-month low of 221 in May, the URA said. Despite the uptick, the July total was still down 59.6 percent from the 1,413 new units sold in the same month a year earlier.

The pickup in home sales was not unexpected in view of last month’s launches of City Developments Ltd’s 276-unit Kassia in Upper Changi Road North and Chip Eng Seng Corp’s 440-unit Sora in Jurong East, PropNex Realty said in a release.

“The two projects collectively made up 45 percent of July’s sales and enjoyed positive interest from buyers, due in part to some pent-up demand since there have been very few sizable launches since the 533-unit Lentor Mansion came on in March 2024,” said Wong Siew Ying, head of research and content at PropNex.

OCR Out Front

The suburban Outside Central Region recorded the most new home sales last month, led by the 154 units shifted at Kassia. The CDL project west of Singapore’s main Changi airport sold its freshly launched homes at a median price per square foot of S$2,049 ($1,555).

The second-best seller in the OCR and islandwide was Sora, a joint venture of Chip Eng Seng’s CEL Development arm, SingHaiyi Group and KSH Holdings. The redevelopment of the Park View Mansions complex sold 103 units at launch for a median price of S$2,152 per square foot.

In the city-fringe Rest of Central Region, developers sold 106 new units in July, led by SingHaiyi’s Grand Dunman (24 units at a median price of S$2,583 per square foot) and CDL and MCL Land’s Tembusu Grand (23 units at a median price of S$2,445 per square foot).

The Core Central Region, meanwhile, saw another quiet month with the sale of 21 new homes — the lowest monthly figure since 16 units were sold in December 2018, according to PropNex. The top-selling CCR project was Hill House in Institution Hill, as the JV of Macly Group, Roxy-Pacific and LWH Holdings moved seven units at a median price of S$3,066 per square foot.

“With peaking home prices and the cautious market sentiment, homebuyers are selective and price conscious, seeking out buying opportunities that could offer the best value proposition,” Wong said. “Given the ample pipeline of new launches to come, many prospective buyers are also in no hurry to commit, preferring to wait for new projects.”

Monthly Average Collapse

For the January-July period, the monthly average of new home sales stood at 357 units, down from 556 in 2023, 616 in 2022 and 1,114 in 2021, according to Knight Frank research.

“Even in the pandemic-led recession year of 2020 when movement restrictions were imposed, the monthly average was 861 units,” said Leonard Tay, head of research at Knight Frank Singapore.

The consultancy is maintaining its full-year primary sales forecast of 4,000-6,000 homes, down from an initial projection of 7,000-9,000 units, but Tay offered cause for hope.

“Compared to any other time this year, the likelihood of interest rate cuts is now more certain than ever,” he said. “An interest rate cut, or cuts in 2024, will create some psychological stimulus that will tip the decision-making balance of potential homebuyers who are presently sitting on the fence towards making a purchase.”