Singapore home sales fall to lowest since May 2020 on costs

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Purchases of new private apartments  in Singapore fell to 488 in June, 64% lower than the 1,355 units sold in May
Singapore new private home sales in June fall to lowest since May 2020. (PHOTO: Getty Creative)

By Faris Mokhtar

(Bloomberg) — Singapore home sales took a massive dive last month to the lowest in more than two years, as concerns over interest rate hikes kept potential buyers at bay.

Purchases of new private apartments fell to 488 in June, Urban Redevelopment Authority figures showed Friday. That’s 64% lower than the 1,355 units sold in May. June’s sales were the lowest since May 2020, when 487 new homes were sold.

The sudden fall in Singapore’s home sales signal that its hot property market may start to calm down, with the city-state possibly joining some of the world’s bubbliest housing markets that are already showing signs of cooling.

It also underpins a rising global concern over higher costs, as central banks — from Canada to South Korea — speed up interest rate hikes to curb inflation. Singapore’s central bank too unexpectedly tightened monetary policy on Thursday to stem inflation.

The dip in sales in June were due to a confluence of factors that include a lack of new launches, declining housing supply coupled with macroeconomic uncertainties, said Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.

“Some buyers may have taken a temporary back seat to reassess their budgets or housing affordability,” she said.

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