Singapore home sales shoot up 80 per cent, hitting 7-month high

The jump in home sales underscores why Singapore’s government introduced fresh measures to cool the market in April

Surging home prices and rents are becoming a headache for the authorities as they tries to mollify citizens and remain competitive as a financial hub

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Inflows of money from abroad have helped Singapore’s property sector remain buoyant even as soaring interest rates cool markets elsewhere. Photo: Reuters

Published: 2:01pm, 15 May 2023Updated: 2:19pm, 15 May 2023

Singapore’s home sales jumped to a seven-month high in April, underscoring why authorities introduced fresh measures to cool the market during the month.

Purchases of new private apartments rose to 887 units, figures from the Urban Redevelopment Authority showed on Monday. The 80 per cent increase from a month earlier came as more projects were launched.

Surging home prices and rents are becoming a headache for Singapore’s government as it tries to mollify citizens and remain competitive as a financial hub. Authorities raised taxes on property purchases in late April, mainly targeting foreign and second-home buyers in a bid to maintain affordability.

While there could be a knee-jerk reaction, the measures should have little impact on purchases between S$1.8 million (US$1.3 million) and S$4 million, said Tan Tee Khoon, Singapore country manager at PropertyGuru.

A show flat at Blossoms by the Park, which opened two days after the cooling measures and sold about 75 per cent of its apartments on the first day. Photo: EdgeProp Singapore

“Demand remains from the upgraders as households have a stronger liquidity position due to intergenerational wealth transfers,” Tan said. The risk of further curbs down the road may prompt some property seekers to bring forward their purchases, he added.

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