Singapore home sales double ahead of latest property curbs

Stats show purchases of new private flats surged to 987 units last month, more than double the two-year low in August, when only 437 units were sold
Buyers looking to upgrade from public housing and an influx of expats, led by rich mainland Chinese, have flooded Singapore’s private residential market

Singapore

Bloomberg

Published: 3:24pm, 17 Oct 2022

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Singapore home sales rebounded in September to climb to the second highest this year, bucking economic headwinds that are roiling property markets worldwide.

Purchases of new private flats surged to 987 units last month, Urban Redevelopment Authority figures showed Monday. That was more than double the two-year low in August, when only 437 units were sold due to a lack of new home launches.

The jump in sales was mainly fuelled by the launch of two major suburban projects, of which 80 per cent were snapped up in the month. Buyers looking to upgrade from public housing and an influx of expats, led by rich mainland Chinese, have flooded Singapore’s private residential market, brushing aside concerns over interest-rate hikes that hurt markets from Sweden to New Zealand.

Rich Chinese are flocking to buy luxury Singapore condos

But demand for homes in the city state might turn tepid at the end of the year, thanks to a fresh round of property curbs and a cloudy economic outlook, said Wong Xian Yang, Cushman & Wakefield Plc’s Singapore head of research.

“The market may witness a knee-jerk reaction in the fourth quarter, as buyers and developers evaluate the impact of the latest cooling measures,” Wong said.

A lack of new project developments coming to market may also weigh on sales.

Fewer flats are expected to be sold in the fourth quarter due to the lack of new launches during the period, said Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie.

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