Singapore witnessed a significant drop in private residential sales during May, primarily due to a shortage of new project launches.

Data released by Singapore's Urban Redevelopment Authority on Monday revealed that developers sold 447 private homes last month, excluding executive condominiums. This figure represents a 71% decrease compared to April. Despite this sharp decline, the sales volume still surpassed the 312 units sold in May of the previous year.

Christine Sun, Chief Researcher and Strategist at Realion Group, noted that the month-on-month decline was not surprising. She attributed it to the fact that only one private residential project was launched in May, whereas several "major projects" had entered the market in April.

Sun commented that while the elevated global energy prices and inflation, driven by the Middle East situation, might take time to ease, Singapore's status as a safe haven could continue to support investment in the city-state. She also pointed out that current mortgage rates remain relatively low compared to the peak levels seen roughly two years ago. Furthermore, the steady sales volumes in preceding months indicate underlying resilience in the demand for private homes.

She added a note of caution, stating, "Nevertheless, given the still-cautious outlook for the job market, affordability will remain a key consideration for homebuyers."