Policy measures taken by Singapore's government appear to have dampened momentum in the private residential property market. However, despite global economic uncertainties, new sales of units by developers remain firm, according to the Monetary Authority of Singapore.
In its Financial Stability Review released this month, the authority says global liquidity remains flush and the search for yield is likely to continue, so 'Singapore may be viewed as a safe haven that could attract investments into the residential property market'.
Cumulative new sales for the first three quarters of this year reached about 12,300 units, up from 12,100 sold over the same period last year. New sales for the full year are expected to match last year's volume.
Investment bank Goldman Sachs says it remains cautious, though Credit Suisse expects 'physical prices to be resilient, given low interest rates and strong household balance sheets'.
Knight Frank data shows that home prices rose 2.5 per cent in the third quarter, but the company expects concerns in the European Union and United States to have some impact.
Clarence Chow, general manager at Centaline (Singapore) Property Agency, says third-quarter results were healthy in primary and secondary markets in terms of transaction volume and prices. 'The four rounds of cooling measures have moderated price increases. We are still enjoying good take-up rates at mass to mid-market level. Even the luxury market, such as The Marque at a record high price at S$6,500 [HK$38,700] per square foot, is still seeing positive interest.'