Data from the Urban Redevelopment Authority of Singapore (URA) showed that sales of new private homes, excluding executive condominiums (ECs), totalled only 394 units in August, 10 per cent fewer than in the same month last year, and 72.1 per cent fewer than in July, which was a one-year high driven by the launch of a number of new projects.

The drop in sales suggests that Singapore's hot property market may finally be starting to slow down as a result of the hit-and-run policy. The market has shown signs of easing since the authorities raised stamp duty on some buyers in April, with private home prices falling for the first time in three years in the following quarter.

Mak Hong Song, chief research officer at property platform Mogul, noted that Singapore's property market may be showing signs of slowing down, partly due to slower economic growth, high interest rates, the impact of cooling measures, and the spectre of further policy risks.

He noted that developers are focussing on pushing sales in launched projects, most of which still have unsold units.

Bloomberg Industry Research analyst Ken Fung (translation) pointed out that buyers are likely to be more discerning due to economic uncertainty and increased choices, leading to lower turnover of launched projects. As a result, it will take longer for developers to sell their projects.

He expects new home sales to remain solid in the second half of the year, however, it may be lower than the boom seen in the first half of the year and last year.

Meanwhile, Sun Yanqing, vice-president of research and consultancy at OrangeTee & Tie, a Singapore-based real estate brokerage, said another reason for the sales slump in August was the seventh month of the Lunar Calendar, which is considered by some buyers to be an unsuitable period for big-ticket purchases.