Singapore private home sales rise the most in more than two years on pent up demand, but rebound likely to fizzle out

Name: Singapore’s last traditional village becomes local tourism hotspot amid coronavirus pandemic
Uploaded: 2020-10-15T10:30:20.000Z
Duration: 2 min 38 s
Description: Singapore’s last traditional village becomes local tourism hotspot amid coronavirus pandemic

Developers sold 1,329 new private dwellings last month, the highest since July 2018

Analysts are divided over the trajectory of Singapore’s private homes market, with some saying the rebound is unlikely to be sustained in the coming months

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Sales of private residential homes in Singapore rose for a fifth straight month in September. Photo: Roy Issa

Cheryl Arcibal

Published: 6:30pm, 15 Oct 2020Updated: 6:30pm, 15 Oct 2020

Sales of private homes in Singapore in September rose by most in more than two years amid pent-up demand, a low-interest rate environment and unprecedented stimulus measures, but analysts expect demand to gradually peter out.

Developers sold 1,329 new private dwellings, excluding government-subsidised flats, last month, the highest since July 2018 when 1,724 units were sold after fresh cooling measures spurred buyers to enter the market, government data showed.

September’s home sales rose by 5.6 per cent from August, and were 4.6 per cent higher compared to a year ago. It was also the fifth straight month of increase in sales after transaction volume plunged in April following the implementation of lockdown measures to stem the spread of Covid-19.

In the first nine months, developers sold 7,532 new homes, surpassing the 7,469 units sold a year earlier.

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Singapore’s last traditional village becomes local tourism hotspot amid coronavirus pandemic

The Southeast Asian nation began implementing restrictive measures in April for two months to contain the pandemic, gradually restarting economic activities. To support the economy, the government pumped more than S$100 billion (US$73 billion) of stimulus. As a result its economy shrunk more slowly at 7.0 per cent in the third quarter compared to the 13.3 per cent contraction in the previous quarter, according to the Ministry of Trade and Industry.

“New home sales, backed by robust demand, have outperformed expectations time and again in recent months,” said Ismail Gafoor, CEO of PropNex, a listed property agency in Singapore.