Singapore’s home sales slumped last month to the lowest since December as a lack of sizable launches and the government’s latest cooling measures kept potential buyers at bay.
Purchases of new private apartments fell to 278 units in June, from 1,038 the previous month, Urban Redevelopment Authority figures showed Monday. That’s the lowest since December 2022, when 170 homes were sold after tight supply curbed demand.
The dip in sales suggest that Singapore’s red-hot property market may finally start to moderate after the nation largely defied a global slowdown from Canada to China. Private home prices fell for the first time in three years in the second quarter on the back of the latest property curbs.
Analysts expect the Singapore market to pick up as the supply of homes rises. After only one 17-unit launch last month, new home sales will likely rebound in July owing to a few large development launches such as Lentor Hills Residences and The Myst, according to Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.
Some 20,000 public flats and 19,000 private housing units are set for completion by year-end, with a combined total of 31,000 to be added in 2024, according to the government.
In April, the government doubled stamp duties for foreign buyers to 60% — the highest among major markets — and also raised levies for second-home buyers. That has “almost killed off the foreign homebuying demand,” said Nicholas Mak, chief research officer at real estate platform Mogul.sg.
Local residents searching for homes to live in, however, remain mostly undeterred.
“Local buyers with aspirations and financial resources will remain active at the upcoming new launches,” said Nicholas Keong, head of residential and private office at Knight Frank Singapore. “Demand for such units in the remaining months of 2023 will continue to be underpinned by homebuyers purchasing for their own occupation, as household balance sheets remain healthy.”
The increase in supply may keep prices in check. Singapore’s private-home price growth is projected to slow to less than 2% in the second half, after rising 2.9% in the first, for an overall gain of up to 5% for the year, according to Bloomberg Intelligence.
