Private residential property sales in Singapore dropped to their lowest level in five months in May, as persistent global trade tensions continued to weigh on buyer sentiment and market confidence in the trade-reliant city-state.
According to data released by the Urban Redevelopment Authority (URA) on Monday, developers sold just 311 new private residential units last month, marking the third consecutive monthly decline in sales. The subdued activity reflects broader concerns over global economic conditions and a more cautious market environment.
The slowdown comes amid escalating global tariff threats, including moves by US President Donald Trump, which have contributed to growing fears of a downturn in international trade. Singapore’s economy contracted in the first quarter of the year, adding to domestic unease.
In May, no major residential projects were launched for sale, underscoring the cautious approach developers are taking in the face of heightened uncertainty. The absence of new launches further constrained sales volumes.
A recent first-quarter survey of senior real estate executives revealed that nearly 90 per cent viewed a global economic slowdown as the most significant risk to the property market. Concerns over potential job losses and a weakening domestic economy also featured prominently.
Singapore may face increased recessionary risks due to the negative impact of tariffs on its export-driven economy, according to a recent report by Bloomberg Economics analyst Tamara Henderson.
Reflecting the cautious sentiment, the government has reduced its land supply for private housing. In the second half of the year, land released for development is expected to yield approximately 4,725 private housing units — a six per cent decrease compared to the first half. Authorities have also placed a greater emphasis on the reserve list, where sites are only made available for tender if there is sufficient developer interest.
The residential market is likely to remain sluggish through June, a traditionally quieter period due to school holidays. One development in eastern Singapore saw fewer than 10 per cent of its 107 freehold units sold during its launch weekend earlier this month.
-Bloomberg
