Singapore’s H1 private home sales plunged to record low, weakest first half since 2004

SINGAPORE: Singapore’s new private home sales have plunged to a record low of 1,916 units, the weakest first half since data tracking began in 2004.

This latest tally is even lower than the sales recorded during the global financial crisis and the COVID-19 pandemic.

Singapore Business Review reported that according to URA flash figures cited by analysts, new home sales, excluding executive condominiums (ECs), dropped 43% in the first half of 2024 compared to the 3,383 units sold in H1 2023.

This is also a 55% decline from the 4,222 units transacted in H1 2022.

Christine Sun, OrangeTee Group Chief Researcher and Strategist noted that the drop in sales was starkly noticeable compared to previous challenging periods: 3,862 units in H1 2020 during the pandemic and 2,287 units in H1 2008 amid the global financial crisis.

Ms Sun also noted that the current sales figures reflect a deeper market issue. Buyers have become more selective amid new launch options and growing resistance to high prices.

This selective buying, coupled with buyer fatigue, has resulted in generally lower take-up rates across new projects in 2024.

Tricia Song, CBRE Head of Research in Southeast Asia, echoed this sentiment, identifying “buyer fatigue” as a significant factor in the weak sales.

She explained that homebuyers are now more selective with their purchases, with reluctance towards increasing prices.

Ms Song expects this cautious approach to continue until there is a notable reduction in interest rates and a stronger economic recovery.

Leonard Tay, Head of Research at Knight Frank Singapore, shares a similar view. He predicts that home sales will likely remain subdued until interest rates decrease.

Despite the overall gloomy outlook, there was a slight rebound in sales for June, with transactions increasing by 2.2% to 228 units from 223 in May.

However, most of these transactions were concentrated in the suburbs, while sales of luxury homes continued to lag. /TISG

Read also: New home sales plummet in February 2024

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