Singapore private home launches plummet 71.4% to 616 units in July

Developers hold prices firm as the level of unsold stock remains low.

According to Ms. Chia Siew Chuin, Head of Residential Research, Research & Consultancy at JLL, 616 new private homes were launched in July, up by more than five times month-on-month (m-o-m) but 71.4% below the tally a year ago. The total units launched in the first seven months of this year is estimated at 2,554 units, a 56.3% decline year-on-year (y-o-y). 

“Although gradually increasing, the still-low level of unsold stock for sale in the market has enabled developers, who face a multitude of challenges, to hold home prices firm,” Chia adds.

Here’s more from JLL:

A gradually expanding unsold stock and ongoing projects in the market have broadened choices for buyers and raised competition among developers. Amid elevated interest rates and high private home prices, this has kept homebuyers selective and cautious, and reined in the pace of price increase.

Developers sold 571 new private homes (excluding ECs) in July 2024, a 150.4% increase from the 228 units sold in June 2024. Total developers’ sales for the first seven months of 2024 stands at an estimated 2,460 units. This is 48.7% below the 4,796 units sold during the same period in 2023. March 2024 still leads with a new sales tally of 718 units thus far in 2024.

The new home sales market is expected to be subdued in August as the Ghost Month, which spans from 4 August to 2 September, commences. During this period, property transactions tend to slow down, and developers typically refrain from launching new projects. Sales momentum should rebound from September onwards, with buyers and developers returning to the market. For instance, the UOL Group is set to introduce the freehold Meyer Blue project in September. Other notable upcoming projects include The Chuan Park and Emerald of Katong.

Based on current trends, new private home sales could register between 4,500 to 6,500 units for the full year, compared to 6,421 units sold in 2023.