Singapore Home Sales Rise to Highest in More Than Two Years

Singapore home sales rose to the highest in more than two years in September on the back of low interest rates and government stimulus cushioning the economic fallout from the coronavirus pandemic.

Unit sales jumped 5.6 per cent to 1,329 last month, the highest since July 2018, Urban Redevelopment Authority data released Thursday showed.

The figures show Singapore’s property market is weathering the city’s worst recession after a two-month lockdown to combat the coronavirus. To cushion the economic fallout, the government unleashed more than S$100 billion ($73 billion) of stimulus.

Property values are also on an upswing, notching a 0.8 per cent increase last quarter, according to preliminary estimates. The stronger-than-expected result has prompted analysts to revise forecasts, saying prices may rise as much as 1.5 per cent this year, having previously estimated declines of as much as six per cent.

Residential housing blocks stand in Singapore on Monday, July 6, 2020. Prime Minister Lee Hsien Loong vowed to hand over Singapore “intact” and in “good working order” to the next generation of leaders, predicting the coronavirus crisis will “weigh heavily” on the nation’s economy for at least a year. Photographer: Wei Leng Tay/Bloomberg

The robust sales are attributable to strong demand from local buyers, especially wealthy people looking for growth assets, said Christine Sun, head of research and consultancy at OrangeTee & Tie.

“They may feel that it is a good time to enter the market since prices will likely rise after the pandemic and Singapore’s economy is positioned for a gradual recovery,” she said. “The housing stock in many mega-launches is diminishing which may have stoked urgency in some buyers to ink a unit now. – Bloomberg