Private home sales in Singapore jumped 51 percent in September as developers marketed more projects post the hungry-ghost festival month, a period Chinese buyers consider inauspicious, and as buyers moved past the additional cooling measures imposed in July.
Developers in the city-state sold 932 units, the Urban Redevelopment Authority said in a statement on Monday. That compares with 617 units in August, the data show.
Total apartments launched for sale last month more than doubled to 1,169. The 932 apartments was 42 percent higher year-on-year.
Singapore private home prices are still inching higher — albeit at the slowest pace in five quarters. An index tracking private residential prices increased 0.5 percent in the three months ended September 30 versus a 3.4 percent advance in the June quarter, according to a flash estimate from the Urban Redevelopment Authority on October 1.
“Market confidence seems to have improved with seven new private residential projects launched in September,” said Ong Teck Hui, national director of research & consultancy at JLL. “While it is early days to make a pronouncement of the full effects of the cooling measures, it would appear that while demand has slowed, many buyers are still on the market and are prepared to purchase at prices which they deem as reasonable.”
Singapore took renewed steps in July to cool the island’s property market after home prices rose more than 7 percent in the first six months of the year. A rush of transactions was fueled by aggressive land bids from developers and so-called en-bloc transactions, which is where a group of owners band together to sell an entire apartment building.
Under the new rules, individuals taking out their first housing loan face stricter borrowing limits, meaning they have to stump up more cash upfront. For foreign purchasers of residential property, the additional buyer’s stamp duty was increased to 20 percent from 15 percent. For Singapore citizens, the extra charges only apply from their second home purchase.
Home prices on the island may rise as much as 10 percent by the end of 2019 and are on track to double by 2030 as faster income growth overpowers the recent property curbs and higher interest rates, Morgan Stanley said last week.