New home sales high but volumes low in Q2 due to high interest rates

CBRE said private home prices fell amidst the cooling measures.

New home sales grew due to new city fringe launches in Q2 2023, with 2,080 new homes sold in Q2 2023, a 65.6% QoQ increase from 1,256 units in Q1 2023, said CBRE in a new report.

"Sales were largely supported by robust take-up at new RCR launches, Blossoms by the Park (275 units), Tembusu Grand (638 units), and The Reserve Residences (732 units)," read the report.

In contrast, sales volumes declined YoY compared to Q2 2022, with 2022's 2,397 units amid high-interest rates, tighter financing conditions, and slow economic growth.

Private home prices went down for the first time in three years after cooling measures. For the same reason, overall private housing prices declined for the first time in three years.

According to URA's All Private Residential Price Index registered a 0.4% QoQ decline in Q2 2023, reversing the 3.3% q-0-q growth in Q1 2023.

Prices of non-landed properties fell 0.5% q-o-q, whilst prices of landed properties saw its smallest gain in two years of 0.1%.