Developers in Singapore have suffered as slide in sales, as the number of new units on the market also falls.
Sales of new homes fell 57 per cent in May 2015 compared to the same month a year ago, according to the Urban Redevelopment Authority . Figures from the URA show that developers sold just 638 units in May 2015, down 45 per cent from the 1,167 sold in April 2015 and significantly lower than the 1,488 units sold in May 2014.
The statistics follow a report from Savills, which highlighted the slowdown in new supply. 1,189 uncompleted private residential units were launched in the first three months of 2015, according to Savills, the lowest since the 2008 Global Financial Crisis and 25.3 per cent down compared to the previous quarter.
Indeed, sales volume in the primary market eased 4.7 per cent quarter-on-quarter to 1,311 units, mainly due to the contraction in the Core Central Region (CCR).
The secondary market also slowed by 2.9 per cent quarter-on-quarter to 1,344 units, showing an even proportion of deals in the primary and secondary market segments, unlike the recent past when primary sales dominated.
On an annual basis, secondary market transactions actually rose 25.5 per cent. Nonetheless, the outlook is not wholly positive.
“The recent easing of interest rates has allayed fears of further downsides in the property market. That said, the cooling measures, together with the Total Debt Servicing Ratio (TDSR) framework, will continue to suppress transaction volumes and prices,” forecasts Savills.