Analysts see August home sales slump as seasonal lull

Consultants expect activity to recover after sales fell 79.1% to 153 units.

Property analysts said the sharp decline in Singapore’s new private home sales in August reflected a seasonal launch drought rather than a significant deterioration in underlying demand.

Developers sold 153 new private homes excluding executive condominiums (ECs), down 79.1% from 731 units transacted in July, according to Urban Redevelopment Authority data.

Sales fell 92.9% from 2,142 units sold in August 2025 and matched the lowest monthly volume recorded since February 2024.

PropNex Head of Research and Content Wong Siew Ying said the decline was expected because new launches typically drive monthly sales.

She said continued purchases from previously launched projects were encouraging, as they showed that demand was not entirely dependent on the novelty of a new launch. Buyers remained willing to transact when available units and pricing met their requirements.

SRI Head of Research and Data Analytics Mohan Sandrasegeran similarly described August as a temporary breather rather than a major shift in demand.

He said the quieter launch calendar gave existing projects more visibility and allowed developers additional time to engage buyers without competing with a large influx of new supply.

Realion Chief Researcher and Strategist Christine Sun said some buyers also held back because the lunar seventh month is traditionally viewed as an unfavourable time for major purchases, whilst others were waiting for upcoming projects.

She noted that the lunar seventh month began on 13 August this year, compared with 23 August in 2025. The later start last year allowed developers to launch five projects comprising almost 2,500 units before the seasonal slowdown, contributing to the steep year-on-year comparison.

Affordability remained an important consideration. PropNex said 60.1% of new non-landed homes sold in August were priced below $2.5m, up from 58.5% in July.

The buyer pool also remained overwhelmingly local. Singaporeans accounted for 82.4% of new non-landed home purchases, whilst permanent residents made up 16.9%.

Only one transaction involved a foreign buyer who was not a permanent resident, the lowest monthly number recorded since 1995, according to PropNex.

Sales for the first eight months of 2026 reached 5,038 units, down 34.3% from 7,669 units in the corresponding period last year.

CBRE Head of Research for Singapore and Southeast Asia Tricia Song attributed the lower year-to-date volume to fewer launches, higher price points and a normalisation in demand following a four-year sales high in 2025.

Analysts expect activity to improve as projects including Amberwood at Holland, Lucerne Grand and Thomson Reserve enter the market.

SRI said September could remain relatively measured because of the school holidays, but the return of major launches should support sales for the rest of the year.

CBRE forecasts that developers will sell between 7,500 and 8,500 new homes in 2026. It also expects private-home prices to increase by 2% to 4%.

However, analysts said employment conditions, higher energy costs, inflation and possible changes in interest rates could influence buyer sentiment and test demand at upcoming launches.