Singapore home sales rise 43pc in wake of cooling action

Singapore home sales rose 43 per cent last month as buyers rushed in after the government announced cooling measures to ease prices.

Home sales increased to 2,013 units in January from 1,410 units in December. There were 22,699 sales for all of last year.

"This is a bit of an abnormality and the increase was a bit of a surprise," said Nicholas Mak, executive director at SLP International Property Consultants. He said developers had extended office hours on the eve of the curbs.

"February will be lower than January because this is when the effects of the cooling measures will be felt," Mak said.

Singapore home prices reached a record high in the fourth quarter amid low interest rates, raising concerns of a housing bubble and prompting the government to introduce its seventh round of cooling measures.

Singapore has been attempting to rein in prices since 2009, when the government barred interest-only loans for some housing projects and stopped allowing developers to absorb interest payments for apartments still being built.

Mak said the curbs were also partly offset by price cuts by developers, some offered through rebates.