Singapore new home sales slow as buyers turn selective

Market Normalisation and Reduced Launches

The Singapore private residential market has transitioned from a period of intense activity to a more normalised state, a development observed by industry analysts. New home sales, excluding executive condominiums (ECs), recorded a decline in the first seven months of 2026.

Data from the Urban Redevelopment Authority (URA), cited by PropNex Research, shows 4,885 units were sold, an 11.6 per cent reduction from the 5,527 units sold in the corresponding period of 2025.

This moderation in sales volume occurred alongside a more pronounced decrease in new project launches, which fell by 28.7 per cent to 4,516 units from 6,334 units over the same timeframe.

CapitaLand Development (CLD) Singapore Managing Director for Investment and Development, Chew Peet Mun, commented that the market has returned to fundamental principles, offering homebuyers a broader array of choices as more new developments become available.

Underlying Demand Persists, Yet Selectivity Rises

Despite the reduction in sales volume and launches, analysis suggests that fundamental buyer demand in Singapore has largely held steady. PropNex CEO Kelvin Fong noted that developer sales in the first seven months of 2026 exceeded new launches by 8.2 per cent, a reversal from the 12.7 per cent deficit observed in the year-ago period.

Savills Singapore's executive director of research and consultancy, Alan Cheong, corroborated this, stating that transaction volume was primarily constrained by fewer available launches. Savills' analysis of sales-to-launch ratios further supports this, showing a ratio of 1.09 in the first four months of 2026, slightly above the 1.08 recorded in the first three months of 2025.

The January-to-July ratio for 2026 reached 1.08, surpassing the five-year average of 1.05 and marking the first reading above one since 2022. However, Mr Cheong also observed a recent deceleration in take-up rates, with projects launched in July achieving an average take-up rate below 55 per cent, compared with 63.9 per cent for those launched in May. No new projects were introduced in June.

Differentiation Becomes Critical Amidst Price Sensitivity

The varying performance of recent project launches underscores a growing discernment among buyers, influenced by higher property prices and broader economic uncertainties. ERA Singapore CEO Marcus Chu articulated this shift, stating that developers must now ensure each project generates its own demand, rather than relying on a universally favourable market.

A comparison of two projects launched earlier this year illustrates this point: Tengah Garden Residences, launched in April, sold 99 per cent of its 863 units at an average S$2,120 per square foot (psf). In contrast, Narra Residences, introduced in January, moved only 25 per cent of its 540 units at launch, priced at S$2,180 psf.

CBRE's Head of Research for Singapore and South-east Asia, Tricia Song, attributed Tengah Garden Residences' success to its relatively accessible entry price, its status as the first private condominium in Tengah, and direct access to a future MRT station and retail amenities.

Narra Residences, despite its established Dairy Farm location, offered less of a transformative proposition, partly due to a longer walk to an MRT station.

Upcoming Launches and Secondary Market Dynamics

The final quarter of 2026 is anticipated to feature several significant project launches, which analysts view as crucial indicators of current buyer demand and pricing strategies. PropNex estimates approximately 2,300 new private homes, excluding ECs, could be marketed during this period.

Key projects include the 1,268-unit Thomson Reserve by CapitaLand Development, UOL Group, and SingLand, planned for an October launch; Sim Lian’s 212-unit Amberwood at Holland, with previews commencing on 11 September; City Developments Ltd's 570-unit Lucerne Grand at Lakeside Drive; and Far East Organization’s 133-unit freehold The Serra Residences in Novena.

Cushman & Wakefield's Head of Research for Singapore and South-east Asia, Wong Xian Yang, highlighted Thomson Reserve and Lucerne Grand as specific "litmus tests" for underlying buyer interest.

This environment has also prompted some buyers to explore the secondary market for potentially better value, a trend reflected in CBRE data showing resale transactions comprising 62 per cent of total private home sales in the second quarter of 2026, an increase from 52 per cent in the third quarter of 2025.

The So-What

Singapore's private residential market is demonstrating a clear shift from broad-based enthusiasm to a more discerning buyer landscape. Developers are now compelled to offer stronger value propositions and differentiate their projects effectively, particularly given rising land costs that contribute to higher overall quantum prices.

The market's capacity to absorb the estimated 2,300 new private homes scheduled for launch in the remainder of 2026 will be a critical determinant of pricing stability and developer inventory levels.

Specifically, the take-up rates of major projects such as Thomson Reserve and Lucerne Grand, once launched in Q4 2026, will provide tangible evidence of buyer willingness to commit at current price points. These figures, expected to emerge in early 2027, will inform future development strategies and could influence the pace of new launches in the subsequent quarters.