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NEW private home sales slumped to a record low for the first half of 2024, pulled down by a lack of new launches and price resistance amid weak sentiment.  

Including the 1,164 units sold in the first quarter of 2024, a total of 1,916 units were transacted in H1, marking the lowest half-yearly new home sales on record, said Tricia Song, CBRE’s head of research for Singapore and South-east Asia.

This is 43.4 per cent lower than the 3,383 units sold in the corresponding period in 2023, she noted. 

Song said: “Buyers are now more selective amid more choices and high price points, with near-term sentiment further dented by a delay in the timeline of US interest rate cuts.”

The current sales figures are even lower than those registered during the global financial crisis, when only 2,287 units were sold in H1 2008; as well as during the Covid-19 lockdown period, when 3,862 units were sold in H1 2020, said Christine Sun, chief researcher and strategist of OrangeTee Group.

“Sales volume is likely to remain subdued until such time when interest rates come down. Prominent new launches that can spur market activity have also been lacking, against a backdrop of homebuyers on the sidelines who are reticent to commit to any purchase,” said Leonard Tay, Knight Frank Singapore’s head of research. 

According to Urban Redevelopment Authority (URA) data released on Monday (Jul 15), developers sold 228 private homes in June excluding executive condominiums (ECs). 

This was 2.2 per cent more than the 223 units sold in May, but 18 per cent lower than the year-ago period when 278 units were sold. 

No new residential projects were launched in June, with the 118 units released last month all part of previously launched residential developments, noted Mogul.sg chief research officer Nicholas Mak.

The June tally was about half the number of units released in May, as the month of June is seasonally slow during the school holiday lull, Mak said. 

For the first six months of 2024, about 1,938 units were launched, which is also a record low, said OrangeTee’s Sun. 

Of the 228 units sold in June, 57.9 per cent were in the Outside Central Region (OCR) driven by sales at developments such as The Lakegarden Residences and The Botany at Dairy Farm, said SRI’s head of research and data analytics, Mohan Sandrasegeran. 

The top-selling residential project of the month, The Lakegarden Residences, moved 23 units at a median price of S$2,119 psf in June. 

Meanwhile, some 31.1 per cent or 71 units sold in June came from the Rest of Central Region (RCR) and the remaining 11 per cent or 25 units came from the Core Central Region (CCR). 

The strong performance of The Lakegarden Residences could have been driven by the buzz surrounding the launch of Sora nearby, spurring a sense of urgency among buyers, said Sandrasegeran. 

A similar spillover effect was observed with The Botany at Dairy Farm and Hillhaven, which are situated near each other and have experienced growing buyer interest in tandem in recent months, he said.

Almost all of the projects in the top-selling list for June came from the OCR and RCR, with the exception of Klimt Cairnhill, which sold eight units at a median price of S$3,335 psf. 

Including ECs, the number of units sold last month stood at 278, up slightly from 263 units in May but down from the 297 units in June 2023. 

The number of ECs sold in June rose by 25 per cent, from 40 units to 50 units. 

Of these units, 29 were from North Gaia at a median price of S$1,311 psf, while Lumina Grand moved another 16 units at a median price of S$1,508 psf, said Marcus Chu, chief executive officer, ERA Singapore.

He said: “As the next available new EC projects will only hit the market in 2025, buyers are snatching up remaining stock, especially when they are available at an affordable price point.”

OrangeTee’s Sun anticipates a surge in market activity in H2. 

While launch activity will be subdued during the Lunar Seventh Month, an increase in project launches during the months of July, early August, and October is expected. 

Major projects in the pipeline include the 440-unit Sora, which was launched in July, the 847-unit Emerald of Katong, the 366-unit Union Square Residences, the 348-unit Norwood Grand, and the 916-unit The Chuan Park.

With new home sales flagging in recent months, Knight Frank’s Tay is slashing his forecast for such sales further to between 4,000 and 6,000 units this year, lower than the 7,000 to 9,000 originally anticipated. 

“Nonetheless, private home prices are still expected to grow around 3 to 5 per cent for the full year due to the prices at new launches that are a result of elevated land costs committed some 12 to 18 months ago, as well as prevailing high construction costs,” he said. 

Private home prices rose by 1.1 per cent in Q2 2024, after rising 1.4 per cent in Q1, according to URA’s flash estimates. For H1, prices were up by 2.5 per cent, a slower increase from the 3.1 per cent growth in H1 2023.