Condo Sales Decline as New Launches Dominate Singapore Market

A significant shift is occurring in Singapore’s property market, as a surge in new condominium launches in October has drawn buyers away from the resale sector. According to data from the Urban Redevelopment Authority (URA) and ERA Research and Market Intelligence, only 753 condominium units were resold in October, representing a 35.3 per cent decline from September’s 1,163 units. This marks the lowest transaction volume in 16 months, continuing a downward trend for the third consecutive month.

The decline coincides with the launch of several new projects, including Zyon Grand at River Valley, Faber Residence in Clementi, Penrith in Queenstown, and Skye at Holland in Holland Village. These developments reportedly achieved impressive take-up rates ranging from 84 to 99 per cent during their initial weekends. In stark contrast, developers sold 2,424 new homes in October, a figure nine times higher than in September and the highest monthly sales recorded this year, excluding executive condominiums.

Market analysts anticipated the declines in August and September, attributing them to the Hungry Ghost Festival, a traditionally quiet period for property transactions. Despite steady demand for resale condos, property agents have noted a shift in buyer behavior, leading to longer selling times for some units.

Market Adjustments and Buyer Sentiment

The current market dynamics have prompted sellers to adjust their expectations. Vivian Chong, an associate senior district director at Huttons Asia, highlighted that properties that once sold in under a month are now languishing on the market for extended periods. Increased caution among buyers, driven by economic uncertainties, has made them more selective in their choices.

With over 20 new condo launches this year, the influx of options has led to a more deliberate decision-making process. Eugene Lim, key executive officer of ERA Singapore, noted that while the overall market volume remains stable, the pace of sales has slowed due to the abundance of choices. He remarked, “In terms of volume, the market is not falling… but there may be a slower pace of sale because too many choices and people are taking longer to decide.”

The resale market exhibited volatility throughout 2025, beginning strong with expectations of falling interest rates, then cooling in the second quarter due to global economic challenges. It saw a brief revival in the third quarter, only to be subdued again as new launches captured buyer interest. Jack Sheo, a senior associate division director at PropNex, shared that his longest listing—a three-bedroom unit in D’Leedon—has been on the market for over seven months. Despite its prime location near esteemed schools, the unit’s current tenancy has limited viewing opportunities, complicating sales efforts.

For sellers like Ric Kua, who seeks a larger home for his family, the market’s sluggishness has been a challenge. After listing his 872 sq ft two-bedroom condominium in March, he experienced a protracted search for a buyer. Initially expecting a quick sale, he ultimately accepted an offer of S$1.6 million (approximately US$1.23 million), which was about 5 per cent below his target price.

Current Trends and Future Outlook

The current landscape has prompted some to describe it as a “buyer’s market,” where the speed of sales increasingly hinges on the perceived value of each property, including its location, layout, and pricing. For instance, demand for one-bedroom apartments has softened since the COVID-19 pandemic, prompting a shift in buyer preferences towards larger homes. Nevertheless, unique features can still attract buyers; Chong noted that competitively priced one-bedroom units with distinct attributes can still sell quickly.

Agents are adapting to the changing market conditions as well. One agent, with 14 years of experience, reported spending 20 to 30 per cent more on marketing listings this year. Her longest listing, a one-bedroom unit in the River Valley district, has remained unsold for three months.

Despite these challenges, data indicates that the resale condo market is not experiencing a drastic slowdown. Approximately 11,515 condo units changed hands in the first ten months of 2025, surpassing the 8,701 units sold in the same period in 2024 and approaching the total of 11,037 units sold last year. Average resale prices have also increased by roughly 2 per cent year-to-date, rising from S$1,605 per square foot in January to S$1,632 in October.

Analysts remain optimistic, with Lim stating that unless there is a consistent drop in volume over a six-month period, there is no cause for concern. Christine Sun, chief researcher at Realion Group, echoed this sentiment, attributing the perceived slowness in transactions partly to the bustling new launch market. She noted that many sellers are still holding firm to higher asking prices, which contributes to a persistent price gap slowing down transactions.

Looking ahead, new project launches are expected to decline sharply in 2026, with Realion Group forecasting only 16 launches comprising 8,223 units, down from 26 launches and 11,430 units this year. This anticipated reduction in supply could direct more buyers toward the resale market, particularly in areas where demand begins to outstrip supply. With Singapore’s economic stability and decreasing borrowing costs—local banks currently offer two- and three-year fixed home loans at rates between 1.55 and 1.65 per cent—there are signs that the market may stabilize.

As buyers navigate the evolving landscape, some are returning to the resale market after finding it challenging to secure favorable positions in new launches. Sheo noted that while many new developments have strong selling points, it remains to be seen if buyers will continue to prioritize new projects over resale homes in the coming year.