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[SINGAPORE] With no new projects launched in May, developers in Singapore sold 312 private homes in the month, less than half the 663 units transacted in April.

Still, the latest sales figure – which excludes executive condominiums (ECs) – was 39.9 per cent higher than the 223 units moved in May 2024, data released by the Urban Redevelopment Authority on Monday (Jun 16) showed.

May’s new home sales were the lowest monthly level recorded in the year thus far, amid the absence of new project launches and slower sales as the nation was preoccupied with the general election, said OrangeTee & Tie chief executive Justin Quek.

In fact, it was the first month in 2025 that had no fresh projects put on the market, said Wong Siew Ying, PropNex head of research and content. 

“The decline in new home sales in May is not unexpected, as fresh project launches tend to drive transactions each month,” she explained. 

Nicholas Mak, chief research officer at Mogul.sg, added that ongoing uncertainties in the economy and job market dampened private housing sales on both the demand and supply sides.

“Developers are waiting for a more favourable market condition to launch their residential projects, while homebuyers are waiting for choice project launches and lower prices,” he said.

Including ECs, 336 units were sold in May with just 20 units launched, compared with 263 units sold and 238 units launched in the same month in 2024. In April this year, 759 units were sold and 1,344 units were launched.

Nonetheless, the sales tally for the first five months of 2025 is around 4,350 units – more than double the 1,688 sold in the same period last year, said Mohan Sandrasegeran, SRI head of research and data analytics. 

“The stronger performance (this year) underscores resilient buyer confidence and more compelling project offerings, even amid broader economic uncertainties and cautious sentiment,” he added. 

Quek noted interest picking up in the luxury market, with nine new non-landed homes sold for between S$5 million and S$10 million in May – up from the two units that transacted for the same price range in April. 

There were also three transactions worth more than S$10 million recorded in May, similar to the previous month, he said. The priciest deal was for a 4,489-square-foot (sq ft) unit at the freehold 21 Anderson condominium in District 10 – for which marketing began in April – at S$24 million or S$5,347 per square foot (psf). 

The other two units – spanning 4,209 sq ft and 4,219 sq ft – were in 32 Gilstead in District 11. Both changed hands for S$15.1 million or around S$3,600 psf. 

All three were bought by permanent residents, noted Lee Sze Teck, Huttons senior director of data analytics.

Overall, the proportion of such buyers remained relatively low, accounting for 14.4 per cent of transactions valued at more than S$1.5 million. Singaporeans were behind 83.4 per cent of these purchases, and foreigners a mere 2.2 per cent.

Slow sales to persist

In June, market watchers expect primary sales to remain sluggish, with no major launches lined up amid the school holiday lull. 

The only launch is that of freehold Arina East Residences, which released a limited number of units for sale to invited clients in the first week of June.

So far, just nine of its 107 units have been sold at a median price of S$2,982 psf. 

The uncertain macroeconomic landscape, stemming from global trade challenges posed by US tariff policies, may also prompt prospective buyers to be more cautious, added Quek of OrangeTee. 

“On the other hand, interest rates have been moderating for the past few months, potentially drawing some investors back into the property market as mortgages become more affordable,” he said.

“Moderating interest rates may also help (public housing) upgraders better afford a private condo, assuming employment and real wages hold stable.”

Huttons’ Lee estimates that around 16 projects generating more than 7,800 homes may be launched for sale in the second half of this year. These include the 683-unit W Residences Marina View in District 1, the 343-unit LyndenWoods in District 5, and the 600-unit Otto Place EC in District 24. 

But Tricia Song, CBRE research head for Singapore and South-east Asia, believes that with most of these projects located in the Core Central and Rest of Central regions – which tend to see higher prices – the monthly sales tally is unlikely to surpass 1,000 units, as seen in previous quarters. 

The full-year figure may therefore come in at 7,000 to 8,000 units, signalling a slowdown in demand, she added. “There is downside risk to this projection should economic conditions worsen significantly.” 

Prices may consequently rise 3 to 4 per cent for the year, thanks to a still-low unsold inventory and strong household balance sheets, she said. “Growth momentum could plateau in the next few quarters on a weaker economic outlook.”