Absence of new condo launches, cautious buyers send May new private home sales skidding

SINGAPORE – New private home sales tanked for a second straight month in May as developers held back new launches and buyers remained cautious amid an uncertain economic outlook pummelled by global trade frictions and geopolitical tensions.

Excluding executive condominiums (ECs), new private home sales dropped to a mere 312 units from 663 in April as the number of newly launched units plummeted to a mere 20 from 1,344 units in April. But May’s sales were still 39 per cent above the 223 units sold in the same month in 2024.

Including ECs, new private home sales fell to 336 units in May from 759 the previous month. No new EC units were launched in May.

But May’s sales still outperformed those of other months in the past three years when no new projects were launched, primarily because of lower interest rates, said Mr Justin Quek, chief executive officer of OrangeTee & Tie.

In fact, 4,350 new private home sales (excluding ECs) were recorded in the first five months of 2025, anchored by robust sales at a few large suburban and city-fringe new launches in the first quarter.

This is up from 1,688 units in the same period in 2024, prompting some analysts to anticipate a gradual rebound in the second half of 2025 as several major new projects are launched.

“May saw 39.3 per cent of new home sales transacted below $2 million,” ERA Singapore chief executive Marcus Chu noted.

But investor interest in city-fringe projects – One Marina Gardens, Bloomsbury Residences in Media Circle, and The Hill @ One-North – remained healthy, with 69 per cent of units sold at below $2 million in these three projects, he said.

Excluding ECs, the biggest proportion of new private homes sold were in the $1 million to $1.5 million range, which is the sweet spot for one-bedroom buyers at One Marina Gardens and Bloomsbury Residences, real estate services firm CBRE noted.

Developers’ sales in the prime district remained tepid, with just 15 new units transacted in May, down from 17 in April. UOL and Singapore Land’s 180-unit Watten House was the best performer in this submarket, moving four units at a median price of $3,255 per sq ft (psf), PropNex said.

In the EC segment, developers sold just 24 new units in May, down 75 per cent from 96 units moved in April. Top EC performers Novo Place and Lumina Grand shifted eight units each at median prices of $1,601 psf and $1,513 psf, respectively, PropNex’s head of research and content Wong Siew Ying said.

As at end-May, there were just 38 unsold new EC units from launched projects on the market, according to Urban Redevelopment Authority data.

Tight unsold stock bodes well for the upcoming 600-unit Otto Place EC in Plantation Close in Tengah, which is expected to be launched in July, said Ms Wong.

Tepid sales could persist in June as there are no major launches lined up during the June school holidays, apart from a private placement at the 107-unit Arina East Residences in Tanjong Rhu Road, Ms Wong said.

This means a limited number of units are released and those invited can indicate the unit they want during sales booking.

Mr Nicholas Mak, chief research officer at property search portal Mogul.sg, noted: “The Singapore primary housing market is going to face further headwinds. The recent flare-up in the Israel-Iran conflict and the end of the 90-day US tariff pause on July 9 would heighten market risks.”

While developers may push back launches in the near term, there is a fair number of new projects ready to be launched in the second half of 2025, said Ms Tricia Song, CBRE’s head of research for Singapore and South-east Asia.

“With most of these located in the prime district and the city-fringe area, which tend to have higher price points, we are unlikely to see monthly new home sales of over 1,000 units seen in the first quarter of 2025,” she said. 

The upcoming pipeline features a diverse mix, from high-end branded residences to city-fringe freehold developments to well-situated EC projects in emerging townships.

These include Arina East Residences, the 348-unit The Robertson Opus in Unity Street, the 347-unit The Sen in Upper Bukit Timah, the 941-unit Springleaf Residence in Upper Thomson and the 524-unit River Green in River Valley.