Singapore unsold private residential units hit 3-year highs in Q2

20,566 units remain unsold, the highest level since Q1/2021.

In a recent report, Savills revealed that the pipeline supply of residential properties (excluding executive condominiums (ECs)) in Singapore  that have obtained planning approvals remains relatively low, with 37,768 units as of the end of Q2/2024. This represents a slight dip of 1.1% from the previous quarter, following a rebound surge of 11.4% in Q1/2024.

“Of these, around 54.5% (20,566 units) remain unsold, which is 3.2% higher than the 19,936 units in the previous quarter, making it the highest since Q1/2021 when uncompleted unsold private residential units amounted to 21,602 units,” the report said.

Here’s more from Savills:

The soaring prices of new launches, alongside high interest rates, global economic uncertainties, and the smaller scale of the projects, may have deterred homebuyers from entering the new sales market, as evidenced by the slow take-up of recent launches in the past few quarters. 

In the second half of the year, the take-up of new projects is expected to pick up with the slated launches of larger-scale projects across all three market segments (mainly in the fringe and suburban areas) and given that interest rates start to come down. Projects in CCR may face challenges with the cooling measures targeting foreigners, who are a signifi cant group of buyers in this market segment, as well as heightened scrutiny after the money-laundering cases.