Developers saw a 69 per cent increase in sales last month compared to the same period last year, according to the latest estimates released by the Urban Renewal Authority on Tuesday. The Alternative Central Region (RCR), which represents mid-range private homes, saw the highest sales, with 836 units sold.

The number of private homes sold in the Core Central Region (CCR), which represents high-end private homes, and the Outer Central Region (OCR), which represents mass-market private homes, stood at 88 and 488 units, respectively. Including executive condominiums, sales jumped 395 per cent to 1,471 units in July from 297 units in June, a 73 per cent increase year-on-year.

Developers launched 2,156 new private homes in July, the highest number of launches since January 2021, up from 31 in the previous month and 408 in the same month last year. The four new private residential developments that opened last month - Grand Dunman, Lentor Hills Residences, The Myst, and Pinetree Hill - accounted for 82 per cent.

Wong Siew Ying, head of research and content at Propnex, said the Urban Renewal Authority's sales ban showed that the share of Singaporeans buying new private homes rose from 83.8 per cent in June to 88.4 per cent in July, the highest share since March 2009 when it was 90.1 per cent. "The increase in the share of Singaporean buyers can be attributed to the launch of new projects in other central and out-of-centre districts in the last month, and may also be due to the easing of demand for foreign investment, which has opened up more opportunities for local buyers."

Data compiled by Huttons' senior director of data analytics, Sid Lee, shows that last month, nearly 25 per cent of flats sold for less than $1.5 million, with more than one-third of those being two-bedrooms. This suggests developers are keeping the best prices to attract first-time buyers and HDB upgraders. Lunar July developers may adjust marketing and pricing strategies

This year, the seventh month of the lunar calendar, commonly known as the "Ghost Festival", runs from Wednesday (16 August) to 14 September, a period when most developers usually avoid launching new projects. Mak Choon Wing, chief research officer of property website MOGUL.sg, said developers may take the opportunity to readjust their marketing and pricing strategies.

Six to nine new projects are expected to be launched in the next few months, but on a smaller scale than those launched in the first seven months of the year, which could lead to fewer sales for developers.

According to analysts' forecasts, total private residential sales are expected to be in the range of 6,500 to 8,000 units this year.Edmund Tie's senior director of research and consulting, Lan Zhenwen, pointed out that market fundamentals remain sound, supported by organic demand growth, a tight labour market and strong household balance sheets.

On the other hand, uncertainty in the macro environment and increased financing costs, coupled with slower sales in the HDB resale market, are dampening demand and price growth. Lang expects private residential prices to rise by 3 to 5 per cent this year.