In June, Singapore’s new-home sales barely went up. This was the weakest first half in at least 20 years, as the market that was once booming loses its enthusiasm.
Data from the Urban Redevelopment Authority showed that builders sold 228 units last month, up from 221 in May.
That means less than 2,000 units were sold in the first half of 2024. Based on early figures, this is the lowest number of units sold since data began being collected in 2004.
High interest rates and steps taken by the government to cool things down have made Singapore’s real estate market slower.
At the same time, the city state’s ruling party is dealing with voter worries about the cost of housing ahead of an upcoming election. This is happening at the same time that officials increase the number of private homes for sale to the highest level in more than ten years.
“Buyers should be patient because there are a lot of launches coming up, including some with lower land costs,” he said.
It’s likely that the slowdown kept going into July. This month, a big project opened and sold less than a fifth of its 440 units in its first weekend.
Even so, house values are still very high. For the fourth quarter in a row, prices of private homes went up. In the first half of the year, a record number of public housing flats sold for at least S$1 million (US$743,000).
A study by Julius Baer Group Ltd. says that the financial hub is now the third-most expensive place in the world to buy a home because of its high prices.
