Singapore home sales hit 6-month low on limited supply, while levies ‘almost kill off foreign demand’
- Sale of privately built homes fell to 278 units in June, from 1,038 the previous month. It was the lowest since 170 homes were sold last December
- Doubling of stamp duties for foreign buyers to 60 per cent and increased levies for second-home buyers in April hit sales
Singapore’s home sales slumped last month to the lowest since December as a lack of sizeable launches and the government’s latest cooling measures kept potential buyers at bay.
Purchases of new private flats fell to 278 units in June, from 1,038 the previous month, Urban Redevelopment Authority figures showed on Monday. That is the lowest since December 2022, when 170 homes were sold after tight supply curbed demand.
The dip in sales suggest that Singapore’s red-hot property market may finally start to moderate after the nation largely defied a global slowdown from Canada to China. Private home prices fell for the first time in three years in the second quarter on the back of the latest property curbs.
Analysts expect the Singapore market to pick up as the supply of homes rises. After only one 17-unit launch last month, new home sales are likely to rebound in July owing to a few large development launches such as Lentor Hills Residences and The Myst, according to Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie.
Some 20,000 public flats and 19,000 private housing units are set for completion by year-end, with a combined total of 31,000 to be added in 2024, according to the government.