Sales hit a record low since April 2020 as developers delayed project launches
SINGAPORE: New private home sales in Singapore plummeted by 47.6% in August compared to the previous month, marking the lowest monthly sales since April 2020 when showrooms were closed due to the COVID-19 “circuit breaker.” According to the Urban Redevelopment Authority (URA), developers sold only 437 units, down from 834 in July.
This sharp decline in sales is attributed to the timing of the Hungry Ghost month, during which developers typically refrain from launching new projects. As a result, the number of units launched for sale in August fell by 66.7%, with only 134 units released — the lowest figure since September 2017.
The Core Central Region (CCR) saw the highest number of sales, with 220 units sold, followed by 127 units in the Rest of Central Region (RCR) and 90 units in the Outside Central Region (OCR). For the first time, sales in the CCR accounted for more than 50% of the total sales for the month. Analysts believe this shift is due to a narrowing price gap between the CCR and RCR, making central locations more appealing to buyers.
The decline in new launches in August led buyers to seek out units from previously launched projects, with notable sales at Hyll On Holland, Riviere, Perfect Ten, and The Hyde.
Increase in Foreign Purchases
Analysts also noted an uptick in foreign purchases. The number of private condominiums bought by foreigners rose from 42 units in July to 59 units in August, with the majority of these transactions taking place in the CCR. As visitor numbers approach pre-pandemic levels, foreign interest in Singapore’s property market has surged, with many buyers attracted by the country’s stable status as a regional hub and its smooth transition to endemic living.
Outlook for September
Looking ahead, property experts expect sales to rebound in the coming months. With at least two projects — Sky Eden@Bedok and Lentor Modern — set to launch in September, analysts predict a recovery in sales. Early reports suggest that Sky Eden@Bedok had a successful launch, selling 75% of its units on the first day at an average price of S$2,100 per square foot.
Despite rising interest rates and inflation concerns, the demand for well-located properties with appealing features remains strong. Buyers seem willing to pay premium prices for projects that offer good value and convenience.
