Developers sold fewer homes last month as the recent round of tighter Covid-19 restrictions dampened show-flat and property viewings and also slowed new launch activity.
New private home sales last month fell nearly 30 per cent to 891 units from 1,268 units in April.
But the drop in sales volume was not as drastic as during the first month of the circuit breaker period in April last year, when sales plunged by almost 60 per cent from the month before, analysts noted.
Year on year, bookings were up 83 per cent from May last year.
Given a cap of two visitors per group - including the property agent - at show-flats, most developers pushed back launches till after the easing of the curbs on Monday, or even to next month, said PropNex chief executive Ismail Gafoor.
"In addition, some buyers may prefer to stay home to reduce (Covid-19) transmission risks. We think these factors have had some impact on sales. But this is mitigated to an extent by the use of digital tools and virtual tours," he said.
The figures from the Urban Redevelopment Authority exclude executive condominium (EC) units - a public-private housing hybrid.
Including ECs sold, developers moved 1,230 new homes last month - just 8.8 per cent down from April, and more than double the 510 units sold in May last year.
Developers launched 927 units for sale last month, down 11 per cent from 1,038 in April, and 51 per cent more than the 615 units in May last year.
"The successful containment of Covid-19 spread and progress in the vaccination programme would also give more confidence," said Mr Ong Teck Hui, senior director of research and consultancy at JLL. "Fundamentals have not changed, as buyers are still positive and developers plan to release more units for sale."
Three new projects were launched before the heightened alert measures kicked in on May 16 - the Provence Residence EC in Canberra Link and luxury projects One Bernam and Park Nova.
Provence Residence and One Bernam were among the best-selling projects last month. Others included earlier launches - Midwood, The Jovell and One Pearl Bank. Together, these projects accounted for 65 per cent of the total units launched.
Given current strong Housing Board unit resale prices, there will be a ready pool of demand from upgraders. "But with expected construction delays, home buyers could turn to the resale market," said CBRE director of research for South-east Asia Catherine He.
This month, sales could remain muted, owing to the absence of major launches, analysts say.
But new home sales should rebound from next month, when more projects are launched. In the pipeline are Pasir Ris 8 and The Watergardens at Canberra in the suburbs; Klimt Cairnhill and Perfect Ten in the prime district; and Parc Greenwich EC at Fernvale Lane.
These projects, especially those in the suburbs where there is pent-up demand from HDB upgraders for cheaper mass market units, could see strong interest.
Last month's take-up was led by projects in the suburbs with 401 units sold, followed by 299 units in the city fringes and 191 units in the prime district, according to JLL.
Despite lower sales in the prime district last month, Park Nova saw 12 units sold at prices from $6.8 million to more than $34 million. Its biggest penthouse transacted at $5,838 per sq ft (psf), beating the recent high of $5,125 psf in another project in the Orchard Boulevard area, said Mr Mark Yip, chief executive of Huttons Asia.
Based on caveats that were lodged, buyers continued to gravitate towards larger homes to accommodate telecommuting and flexible work arrangements, said Ms Wong Siew Ying, PropNex's head of research and content.
She said the number of new non-landed homes (excluding ECs) sold last month that were 1,200 sq ft and above accounted for 19.4 per cent of total sales, up from 14.7 per cent in April and 11 per cent in March, she said.
