Singapore home sales hit two-year low on a lack of project launches

Singapore home sales fell 48% in August to the lowest in more than two years as a lack of supply kept buyers at bay.

According to data released by the Urban Redevelopment Authority (URA) on Thursday (Sep 15), purchases of new private apartments dropped to 437 units last month from 834 in July.

Meanwhile, developers launched only 134 units, 66.7% lower than the 402 units launched the month before.

However, home prices in Singapore are still increasing as wealthy locals and high-earners moving to the city-state. Despite a brief slowdown, residential prices have rebounded and grew at a faster pace than expected in Q2, climbing 3.5%.

Unlike in other markets, inflation and rising interest rates do not seem to have a significant impact on the property market, said Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.

"For some people, affordability is not an issue even if prices are still rising,”she added.

Looking ahead, Sun expects sales volume to rebound in September due to the launch of condo projects like Sky Eden@Bedok and the highly anticipated integrated development, Lentor Modern.

Source: Bloomberg, Urban Redevelopment Authority