July Private Home Sales Surge 150% MoM; 30 New Units Priced Under $1 Million

New private home launches by developers in Singapore surged by 422% month-on-month in July, with sales also rebounding by 150% over the same period. However, analysts were not surprised by this rebound, as new supply and transaction volumes in June were traditionally subdued due to the mid-year school holidays, and July's performance remained relatively weak on a year-on-year basis.

According to the latest data released by the Urban Redevelopment Authority (URA), developers launched 616 private residential units (excluding Executive Condominiums, or ECs) and sold 571 units in July, significantly higher than the 118 units launched and 228 units sold in June.

In terms of geographical distribution, the mass-market Outside Central Region (OCR) saw the highest number of new launches with 615 units, leading July's sales volume with 444 units transacted.

In contrast, the Core Central Region (CCR) saw only one luxury private home launched, with monthly sales reaching just 21 units—the lowest among all regions.

The Rest of Central Region (RCR), which represents city-fringe mid-tier private homes, recorded no new launches, with sales coming in at 106 units.

While private home sales picked up following the end of the June school holidays, it was still the lowest July sales volume recorded since 2014 on a year-on-year basis, falling short of half of the five-year historical average for July (1,223 units).

Buyers appear increasingly price-sensitive, with recent project launches clearly reflecting a growing preference for lower-quantum units.

A total of 30 new units were transacted below $1 million this month, while 196 units were sold within the $1 million to $1.5 million price range.

July also marked the first time this year that new private home units were sold below $1 million. Among the two major project launches during the month, most of the one-bedroom units at Kassia were priced under $1 million, while 70% of the units sold at Sora were one- and two-bedroom units priced below $1.5 million.

August Private Home Market Expected to Remain Subdued Amid Hungry Ghost Month

Looking ahead, market observers noted that the private residential market is expected to remain quiet in August, accompanied by fewer new launches, coinciding with the Lunar Seventh Month (Hungry Ghost Festival).

Developers are actively trying to clear existing inventory in previously launched projects ahead of rolling out new developments, offering higher agency commissions and cash incentives. Sales commissions for selected private residential projects have reportedly reached as high as 5%.

Meanwhile, despite an anticipated interest rate cut by the US Federal Reserve, it is unlikely to significantly impact the local private property market unless the cut exceeds 50 basis points, as local mortgage rates are already relatively competitive. Unless borrowing costs for homebuyers drop substantially, private home sales volumes are unlikely to see a marked increase.