Singapore’s new-home sales barely rose in June, capping the weakest first half in at least two decades as sentiment wanes in the once-booming market.
Developers sold 228 units last month, up from 221 in May, figures from the Urban Redevelopment Authority. That means fewer than 2,000 units were sold in the first six months of 2024, the least in available data going back to 2004, according to preliminary calculations.
Initial home sales figures for the second quarter may be revised in finalised data released later this month. High interest rates and government cooling measures have slowed Singapore’s real estate market. At the same time, the city-state’s ruling party is grappling with voter concerns about housing affordability ahead of an impending election, with policymakers ramping up the supply of private housing to the highest in more than a decade.
Despite the prospect of future decreases in mortgage rates boosting sales, there is a lingering impact from existing cooling steps, Citigroup Inc. analyst Brandon Lee wrote. “We expect buyers to be patient given sizeable pipeline of launches and lower land-cost projects to be launched shortly,” he said.
The slowdown probably continued into July. A mass project launched earlier this month sold less than a quarter of its 440 units in its first weekend.
Still, property valuations remain high. Private home prices rose for a fourth straight quarter, while the first half saw a record number of sales of public housing flats for at least S$1 million ($745,000), according to data compiled by realtor OrangeTee Group. Elevated prices have made the financial hub the third-most expensive city in the world to buy private homes, according to a report by Julius Baer Group Ltd.
