SINGAPORE: Sales of new private homes for May in Singapore reached a 12-month peak, despite higher taxes that went into effect in April in a bid to cool the property market.
Data released by the Urban Redevelopment Authority (URA) on Thursday (June 15) shows that there were 1,038 new homes sold in May, a 17 per cent increase from April. This figure, additionally, does not include resale transactions and executive condominium sales.
In April, the government implemented a third round of measures to cool the property market and disincentivize foreign buyers. Stamp duties for foreign buyers have doubled and are now at 60 per cent, one of the highest rates around the globe. The Government has said this should “moderate investment demand,” which is still expected to increase.
This is the first time that more than 1,000 units have been sold in a month since May 2022, when the total number of sales was 1,355.
Ms Christine Sun, senior vice president of research and analytics at OrangeTee & Tie, is quoted in a Reuters report as saying that the increase in the rate of new home sales last month was due to local demand and did not necessarily mean that the new measures are ineffective.
Last month’s record sales are due, at least in part, to two launches of properties with a sizable number of units: The Continuum in Geylang, from Hoi Hup Realty and Sunway Developments, and The Reserve Residences in Bukit Timah, from Far East Organization and Sino Group.
A release from PropNex says that 225 units at The Continuum were sold, while The Reserve Residences moved 523 units in May.
With no new home launches in June, however, sales are expected to be considerably lower.
Wong Siew Ying, the head of research and content at PropNex, said, “Despite three rounds of cooling measures since December 2021, high home loan mortgage rates, slower economic growth outlook, and firm home prices, demand for new private residential launches has remained resilient.” /TISG