Singapore home sales hit their highest level in three years

PUBLISHED : Wednesday, 17 October, 2012, 12:00am
UPDATED : Wednesday, 17 October, 2012, 1:53am

Home sales in Singapore rose 84 per cent last month - the highest in more than three years - as developers sold more flats after a decline in August, a month considered inauspicious based on the lunar calendar.

A total of 2,621 flats were sold, compared with 1,427 in August, according to the Urban Redevelopment Authority. It is the highest number since July 2009. Sales rose 7.7 per cent to 5,999 flats in the three months to September 30 from the previous quarter.

Home prices hit a record high in the third quarter amid low interest rates, raising concerns of a housing bubble. The government would not allow prices to outstrip gains in incomes, Finance Minister Tharman Shanmugaratnam said in Hong Kong last week.

The Monetary Authority of Singapore told banks early this month to restrict home-loan maturities "to curb continued upward pressure on residential property prices", in its latest bid to avert a housing bubble.