Singapore private home sales plummet to 16-year low in August

Singapore’s private home sales dropped to a 16-year low in August, reflecting weak buyer sentiment, although new launches and anticipated interest rate cuts are expected to drive demand in the coming months.

Developers sold 208 units, down 47% year-on-year, according to Urban Redevelopment Authority data released Monday as cited by The Straits Times.

“This is a record low for the month of August since 325 units were sold in August 2008,” Tricia Song, property consultancy CBRE’s head of research for Southeast Asia, was quoted as saying.

The year 2024 is on track to be the weakest for annual new home sales since 2008, when 4,264 units were sold. Market sentiment has remained cautious since late 2023, Song added.

In the first eight months sales reached 2,668 units, down 49% year-on-year.

Most developers are waiting for home-buyers’ enthusiasm and more risk appetite to return, said Nicholas Mak, the chief research officer at property portal Mogul.sg, as reported by Bloomberg.

Demand is set to be tested in the coming months, as 56.2% of developers anticipate a moderately or significantly higher number of units to be launched in the second half of the year, according to a June quarterly survey of senior executives in Singapore’s real estate and development industry.

Analysts say that sales volumes are likely to recover in September, driven by several upcoming launches, potential improvements in the economy, and possible interest rate cuts.