Singapore's H1 private home sales slip to a two-decade low

The latest tally was even lower than the global financial crisis.

New private home sales in Singapore plunged to a record low of 1,916 units, marking the weakest first half since data was available in 2004. 

URA flash figures cited by analysts showed new home sales, excluding ECs, dropped 43% in the first half from the 3,383 units sold in H1 2023, and was also 55% lower than the 4,222 units transacted in H1 2022.

The latest six-month tally was even lower compared to the transactions during the COVID-19 pandemic in H1 2020 (3,862 units) and the global financial crisis in H1 2008 (2,287 units), as pointed out by OrangeTee Group Chief Researcher and Strategist Christine Sun.

Buyers have turned more selective amid a myriad of new launch options, buyer fatigue and increasing resistance to high price points, with generally lower take-up rates observed across 2024 project launches. Homebuyers’ current tentative stance is likely to persist until interest rate cuts and an economic rebound catalyse a recovery in sentiment.

Tricia Song, CBRE Head of Research in Southeast Asia, pointed to “buyer fatigue” as a main contributor to weak sales in the first half. Song said homebuyers have grown more selective with their purchases and are aversive to price increases. 

Song expects home seekers to maintain a watch-and-see approach as they await interest rate cuts and a stronger economic rebound.

Leonard Tay, research head of Knight Frank Singapore, shared the same view, adding that home sales will likely stay subdued until interest rates come down.

For June, home sales rebounded by 2.2% to 228 units from 223 in May. More than half of transactions during the month were in the suburbs, while sales of luxury homes remained subdued.