Private property market lags with only 1,899 units sold in H1

This falls short of DBS's initial forecast of 7,500 to 8,500 units for the year.

The private property market in Singapore has slowed significantly in the first half of 2024, with only 1,899 units sold, according to a report by DBS. 

This figure falls short of the bank’s initial forecast of 7,500 to 8,000 units for the year, which was based on historical average home formation levels.

DBS attributes the sluggish performance to limited new project launches due to delays in regulatory approvals or the completion of show flats, along with weak buyer sentiment driven by macroeconomic uncertainties, property cooling measures, and expectations of falling interest rates.

Notable transactions include the 459 units sold at Lentor Modern, followed by developments such as Hillhaven, Kassia, Lentor Hills Residences, and Lentoria.

Despite the market slowdown, DBS is anticipating a rebound from the new launches. 

Recent projects have exceeded expectations with sell-through rates of 52% at Kassia, 53% at 8@BT, and 50% at Meyer Blue. This contrasts with the weaker performance in the first half, where most new launches only averaged around 30%.

Looking ahead, DBS expects positive developments in the property market as interest rates have peaked following the US Federal Reserve's rate cuts in September. The bank anticipates a further 50 basis points reduction by the end of the year and an additional 150 basis points cut in 2025, which will likely ease the Singapore Overnight Rate Average.

Lower mortgage rates should support improved affordability, helping to stabilise the property market in the months ahead, DBS added.