Private home sales in Singapore declined in September as developers postponed significant project launches during this traditionally quieter time.

According to data from the city's Urban Redevelopment Authority, developers sold about 255 units for the month. This figure represents the lowest sales total this year, following a strong performance in August.

This slowdown was anticipated due to the coinciding seventh month of the Chinese Lunar calendar, when property firms typically delay project releases to avoid discouraging buyers who may consider this an inauspicious time for home purchases.

Singapore Property Market Hits Temporary Lull

The slowdown in new home sales has come on the heels of an exceptional August.

Notably, the first major project launched this month sold more units than all of September combined, moving almost all of its 666 units during the past weekend. This trend signals that the home-buying surge is likely to persist, despite various government measures introduced in recent years aimed at moderating market enthusiasm.

Three additional projects set to launch in October are expected to achieve similarly strong sales, as stated by Citigroup Inc. analyst Brandon Lee in a note on Monday, suggesting that this will bolster developers’ share prices. An index tracking Singapore-listed real estate developers and operators has surged nearly 40% this year.

Growing demand for new units has been fueled by factors such as decreasing local lending rates and interest from affluent long-term foreign residents, as these units are often marketed well in advance of their completion. Consequently, home prices have seen an estimated increase of 1.2% in the third quarter compared to the previous three months.