Sales of Residential Property in Singapore Increase
18 August 2011
Sales of private homes in Singapore increased by 17%, although this increase follows a drop of 25% on the previous month. It's thought much of this increase may be down to superstitious buyers avoiding purchasing property during the Hungry Ghost month, as data has shown that a similar trend in previous years.
This is because buyers consider the seventh lunar month to be inauspicious for purchasing property. However the increase may also be due to low mortgage rates and the lack of new developments, as even though sales have increased the number of new developments being launched has continued to decline, increasing the uptake rate considerably. According to figures from the Urban Redevelopment Authority, developers sold 1,386 residential units in July, up from 1,182 in June. However these figures are still 11% less than figures for July 2010, when 1,553 units were sold.
The Housing Development Board in Singapore has also recently announced changes to the public housing market, and is to increase the number of built to order flats by around 25,000, and it will also increase the household income ceiling. These measures are expected to result in decreased demand for private units, but this is not expected to greatly affect property prices.
This is because the continuing volatility in the global stock markets makes property investment more appealing, and Singapore is still considered a strong economy, especially when compared to the United States and the Eurozone. Demand for private units is only expected to decrease by 700 to 2,000 units.