Singapore’s new home sales rebound in July

Singapore’s new home sales in July reached their highest level since March, rebounding from a historically weak first half.

Developers in the city-state sold 571 units last month, more than double the 228 sold in June, according to data from the Urban Redevelopment Authority released on Thursday.

However, this figure represents only about 40 per cent of the sales recorded in the same period last year.

July typically experiences a seasonal rise in sales due to the tail end of the months-long school holiday in June. Additionally, the launch of two new suburban projects contributed to the uplift in July’s figures.

Local developers are cautiously optimistic about a potential recovery in the second half of the year, fuelled by expectations of lower interest rates.

Despite the positive trend, analysts remain cautious. Nicholas Mak, chief research officer at property portal Mogul.sg, pointed out that the rebound primarily stems from new project launches.

Developers will continue to release new projects at a steady pace, and interest rate decreases will not have a significant impact on property demand. Local banks have already introduced lower promotional mortgage rates.

During an earnings briefing, City Developments Ltd. CEO Sherman Kwek mentioned that developers are unlikely to hold onto unsold stock, which has contributed to the sales slowdown in the first half. He highlighted a government penalty for developers who fail to sell their projects within five years.

The government has relaxed this penalty earlier this year in response to the market slowdown. Authorities are still working to increase private housing supply to address concerns about housing affordability and rising private home prices.

Attribution: Bloomberg

Subediting: M. S. Salama