More new private homes sold in June but half-year sales figure lowest on record
File photo of private and HDB blocks in Singapore. (Photo: CNA/Jeremy Long)
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SINGAPORE: Purchases of new private homes rose in June, but the market still saw its lowest half-yearly figure on record.
Data released by the Urban Redevelopment Authority (URA) on Monday (Jul 15) showed that, excluding executive condominiums (ECs), developers sold 228 units in June, up 2.2 per cent from the month before.
With 1,916 units sold in the first half of 2024, this marked the lowest half-year figure recorded since 2008, lower than the second half of 2008 - during the global financial crisis - when 1,977 units were sold, said CBRE head of research of Southeast Asia Tricia Song.
OrangeTee's chief researcher and strategist Christine Sun also noted that the figure was lower compared to the COVID-19 lockdown period, which saw 3,863 units sold in the first half of 2020.
On a year-on-year basis, new private home sales fell about 18 per cent last month from the 278 units sold in June 2023.
MUTED SALES IN JUNE
Property analysts attributed the marginal increase in the market due to the school holidays in June and the lack of major project launches during that period.
"Developers could also have held back on launches amid near-term interest rate uncertainty and the current tentative buying sentiment," said Ms Song.
Huttons' senior director of data analytics Lee Sze Teck added that buyers "remained highly selective and budget conscious in view of the economic climate".
According to property analysts, last month's sales were driven by units sold in the Outside Central Region (OCR), making up 57.9 per cent. This was followed by sales in the Rest of Central Region (RCR) at 31.1 per cent and the Core Central Region (CCR) at 11 per cent.
The Lakegarden Residences led the list of units sold in the OCR, followed by The Botany at Dairy Farm in the same region, and Tembusu Grand in the RCR.
"The scarcity of major new launches and the introduction of generally smaller-sized developments in the RCR segment during the first half of 2024 have helped sustain interest in these properties, demonstrating their lasting appeal in the market," said Singapore Realty Inc's head of research and data analytics Mohan Sandrasegeran.
Ms Song also noted that all of the top 10 best-performing projects in June came from existing projects mainly from the OCR and RCR, which is "indicative that buyers have turned very price sensitive amid economic weakness and high mortgage rates".
OUTLOOK FOR SECOND HALF OF 2024
Private home sales could start to pick up in July, property analysts estimated, due to the launch of more major projects such as Sora - along Yuan Ching Road in Jurong Lake District - and Emerald of Katong, located at Jalan Tembusu.
Mr Sandrasegeran said: "After a period of limited new launches, the market is expected to generate significant interest. These fresh offerings, with their unique characteristics and prime locations, are expected to rejuvenate the real estate scene."
Ms Sun said that most developers will also schedule their project launches to avoid the lunar seventh month, seen by some as inauspicious.
She expects a "notable increase" in project launches in early August and October "due to the anticipated pent-up demand for new homes following the one-month gap in project launches".
Although sales are likely to increase in July, Ms Song said the tentative stance among buyers is likely to continue until interest rates drop and the economy rebounds.
"Nonetheless, with the expectation of a delay in interest rate cuts amid protracted economic uncertainty, the timeline for a more significant recovery in new developer sales is likely to be pushed to 2025," she added.
