New private home sales lowest for the year in May, but up 40% year on year
Still, the latest May sales figure – which excludes executive condominiums (ECs) – was 39.9 per cent higher than the 223 units moved in the same month a year earlier, data released by the Urban Redevelopment Authority (URA) showed on Monday (Jun 16).
May's new home sales were the lowest level recorded in the year thus far, in the absence of new project launches and slower sales with the nation preoccupied with a general election during the month, said OrangeTee & Tie chief executive Justin Quek.
In fact, this was the first month in 2025 where there have been 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,' Wong 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.
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'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, versus the 263 units sold and 238 units launched in the same month in 2024. In comparison, 759 units were sold and 1,344 units launched in April.
Still, the new sales tally for the first five months of 2025 stands at around 4,350 units – more than double the 1,688 sold in the same period last year, said Mohan Sandrasegeran, Singapore Realtors Inc head of research and data analytics.
'The stronger performance (this year) underscores resilient buyer confidence and more compelling project offerings, even amidst broader economic uncertainties and cautious sentiment,' he said.
Quek saw persistent 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 the month before.
There were also three transactions of more than S$10 million recorded in May, similar to the previous month, he said. The priciest deal was for a 4,489 square feet unit at the freehold 21 Anderson condominium in District 10, which started marketing in April, for 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, respectively – were sold at 32 Gilstead in District 11. Both changed hands at S$15.1 million or around S$3,600 psf.
All three were bought by permanent residents, pointed out Lee Sze Teck, Huttons senior director of data analytics.
Overall, this group of buyers remained relatively low, accounting for 14.4 per cent of transactions valued at over S$1.5 million. Singaporeans were behind 83.4 per cent of such purchases, and foreigners a mere 2.2 per cent.
Slow sales to persist
In the following month, market watchers expect primary sales to remain sluggish with no major launches lined up amid the school holiday lull.
The only launch on the market is the 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,' said Quek. '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 CBRE research head for Southeast Asia Tricia Song reckons with most of these projects located in the Core Central Region and Rest of Central Region – 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 in the next few quarters, said Song. '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.'
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