Singapore Home Sales Fall, Adding to Signs of Cooling Market

(Bloomberg) --

Sales of private apartments in Singapore fell in December as new unit launches dropped to a one-year low, in a further sign the property market is cooling.

Developers sold 538 units last month, down 54% from 1,165 in November, Urban Redevelopment Authority data released Wednesday showed. The decline came as fewer projects were launched, with 370 new apartments hitting the market versus 947 in November.

Private home prices rose just 0.3% last quarter, down from the previous quarter’s 1.3% gain, signaling government cooling measures imposed in July 2018 continue to weigh on the market.

The property market is also groaning under a glut of about 32,000 unsold apartments, which the central bank and developers have warned may push prices down further.

Property analysts, however, cautioned against being too alarmist given that transactions and launches typically dip during the December holidays.

Sales and launches are set to remain low this month, with the Lunar New Year falling on Jan 25. Once the major holidays are over, sales could start to pick up pace, analysts said.

What analysts say:

• It’s unlikely developers will push prices down, said Nicholas Mak, head of research at APAC Realty Ltd. unit ERA. “Developers’ reputation will take a hit if they launch new projects at higher prices and then lower them shortly afterward,” he said.
• Demand for new homes is anticipated to remain robust and sales could hover between 9,000 and 9,800 units this year, said Christine Sun, the head of research and consultancy at OrangeTee & Tie Pte. Prices may rise 2% to 4% this year, she added.

To contact the reporter on this story: Faris Mokhtar in Singapore at fmokhtar1@bloomberg.net

To contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net, Peter Vercoe, Candice Zachariahs

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