Singapore Private Home Sales Plummet to Five-Month Low Amid Tariff Uncertainty

Singapore's private home sales fell to a five-month low in May due to global tariff tensions and a contraction in the city-state's economy. Developer sales dropped for the third consecutive month, with just 311 units bought, and the outlook for the city-state has dimmed. Authorities have adopted a cautious approach, offering fewer land parcels and expanding the reserve list. The market's sluggish performance is expected to persist into June, typically a slow month due to school holidays.

Singapore's private home sales have reached a five-month low in May, with just 311 units bought, according to data released by the Urban Redevelopment Authority (URA) on Monday [2]. This decline follows a series of economic headwinds, including global tariff tensions and a contraction in the city-state's economy.

The slowdown in sales comes as developers have grown increasingly cautious, launching no major projects for sale in May. This pause further weighed on sales figures, as the market's sluggish performance is expected to persist into June, typically a slow month due to school holidays [2].

In response to the uncertain economic climate, the Ministry of National Development announced a reduction in the number of private housing units on the confirmed list of the Government Land Sales (GLS) programme for the next six months. The confirmed list supply will fall by 6.1 percent to 4,725 units, while the reserve list will increase, reflecting a more cautious approach from authorities [1].

Analysts attribute the reduction in confirmed list supply to growing economic headwinds and labor market uncertainty. Ms. Tricia Song, CBRE’s head of research for Singapore and Southeast Asia, noted that the increase in reserve list supply is an appropriate response to slower home sales since April and still-rising prices amid a tentative macroeconomic climate [1].

The reduction in confirmed list supply is part of a broader strategy to moderate recent bullish land bids in selected locations that have seen overwhelming interest. The release of sites such as Dunearn Road and Woodlands Drive 17 could ease competition for nearby sites and moderate bids [1].

The market's sluggish performance is also reflected in the United States and China's temporary truce in their trade war, which has seen tariffs soar to eye-watering levels. China's factory output grew slower than expected last month, while a bump in a key gauge of domestic consumption offered a rare bright spot for the economy [3].

Despite the temporary truce, the contraction in industrial sales for export appears to have deepened last month, highlighting the ongoing impact of trade tensions. However, retail sales grew 6.4 percent year-on-year in May, indicating a possible impact of a government trade-in programme for consumer goods [3].

In summary, Singapore's private home sales have fallen to a five-month low due to global tariff tensions and a contraction in the city-state's economy. Authorities have adopted a cautious approach, offering fewer land parcels and expanding the reserve list. The market's sluggish performance is expected to persist into June, with developers launching no major projects for sale in May.

References:
[1] https://www.straitstimes.com/singapore/housing/singapore-trims-private-housing-land-supply-on-confirmed-list-amid-economic-headwinds
[2] https://www.bloomberg.com/news/articles/2025-06-16/singapore-home-sales-drop-to-five-month-low-on-tariff-fears
[3] https://sg.finance.yahoo.com/news/china-factory-output-slumps-consumption-040007092.html