Singapore unsold private residential inventory remains below 5-year pre-covid quarterly average 

The unsold stock grew by 15.8% YoY to 20,758 units in Q2.

The total stock of unsold private residential units islandwide grew for the third straight quarter in 2Q24 to 20,758 units, up 2.7% q-o-q and 15.8% compared to 2Q23, according to a JLL report. 

“The level of unsold inventory has been expanding steadily from the low of 14,333 units in 4Q21 but remains below the five-year pre-COVID quarterly average (2015-2019) of 26,930 units. The current level is also 45.1% below from the peak of 37,799 units in 1Q19,” the report added.

Here’s more from JLL:

Among the market segments, unsold stock in the CCR and OCR fell by 2.2% and 5.1%, respectively in 2Q24, while the RCR recorded a 17.3% increase mainly due to a significant rise in unsold units without pre-requisites for sale.

The steadily expanding total unsold stock suggests a gradual easing in the prolonged tight supply situation in the private residential sales market. The acceleration of the Government Land Sales (GLS) programme since 1H21 to increase land supply for the development private homes through the confirmed list has translated into more units available for sale. Based on an unsold stock of 20,758 units as of 2Q24 and an average annual new home sales tally of 9,288 units in the last five years, developers have about two years of landbank. 

Developers have been highly prudent and selective when sourcing for land in light of tight profit margins, homebuyers’ cautious stance and prevailing market uncertainties. The GLS tenders for residential sites that closed in 2Q24 received lukewarm interest and measured bids from developers amid greater caution and perceived increased development risks.

Meanwhile, the prolonged misalignment in pricing expectations between developers and sellers continues to prevent the successful conclusion of deals in the private residential land sales market. The tentativeness of developers is foreseen to persist over the rest of the year, keeping the residential land sales market muted.