SINGAPORE: Singapore’s new home sales slightly recovered in September thanks to new supply and US interest rate cuts.
According to data from the Urban Redevelopment Authority (URA) released on Tuesday, developers sold 401 private units last month.
This number is nearly double the sales recorded in August and is the highest monthly sales since July.
According to Yahoo News, Singapore developers launched more projects in the market following the US rate cut.
However, the city-state’s once-thriving property market continues to face challenges due to various housing restrictions.
Two projects that contributed to last month’s sales highlight the mixed nature of the market. Both have sold more than half of their units, likely due to their locations in a prime district in Singapore.
Nicholas Mak, chief research officer at Mogul.sg, said the sales increase seen in September will likely continue in October but will slow down in December due to the holiday season.
Despite this, the market for new private homes is still expected to experience its worst year since the global financial crisis in 2008. Government officials have warned that domestic mortgage rates will remain high for some time.
However, the recovery in September sales has led to speculation that the estimated 1.1 per cent decline in home prices for the third quarter, which was the first drop in five quarters, may be adjusted to a smaller decrease.
The URA’s data includes only purchases made up to mid-September, so the final numbers, which will cover all September sales, are expected to be released on Oct 25. /TISG
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