A brief recovery in Singapore new home-sales ran out of steam, as transactions fell to its lowest level since February.

Sales of new private homes dropped to 208 in August, more than halving from the 571 units sold a month before. It was also down about 47% from a year ago.

Transaction numbers have been hindered by the lack of major residential projects for sale, as developers turn cautious amid high interest rates and multiple housing curbs. So far, that hasn’t translated to a drop in prices, with sales, particularly in the second-hand market, propping up valuations.

Most developers are waiting for home-buyers’ enthusiasm and more risk appetite to return,” said Nicholas Mak, the chief research officer at Mogul.sg, a property portal. “Now it’s still ‘not yet, hopefully soon.’”

Demand will be tested in the coming months, with 56.2% of developers expecting a moderately or substantially higher number of units to be launched in the second half, according to a June quarterly survey of senior executives in the Singapore real estate and development industry.

Meanwhile, Singapore is releasing the most private housing supply in over a decade this year, as it continues to grapple with voters’ concern over housing affordability.

The same questionnaire found that concern about more government curbs is rising too, with 30.8% of respondents indicating it as a potential risk. That’s up from 11.8% in the previous quarter. 

Authorities have so far downplayed the need for more measures in the private market, but said they will “act decisively” if such a need appears.

  - Bloomberg