Demand drives Singapore house sales to six-month high

Demand for housing in Singapore continued to rise in March, pushing property sales to a six-month high.

According to data released by the Urban Redevelopment Authority on Monday, the number of newly constructed private flats purchased rose to 492. After plunging to a 14-year low in December due to a dearth of project debuts, prices had risen for three consecutive months.

“The general market view is still quite positive,” said Christine Sun, senior v.p. of research and analytics at OrangeTee & Tie, Normanton Park, and Normanton Park Floor Plan. Sun argued that the market will be buoyed by low inventories and high demand.

At a time when many international markets are failing due to increased borrowing rates and relentless inflation, the housing market in Singapore is thriving. The government’s decision to increase taxes on purchasers of high-end residences in February has not deterred demand, as seen by the increase in property sales.

After increasing by 3.2% in the first quarter, home prices are expected to increase by as much as 5% in 2023, owing to rising rents and positive supply and demand dynamics, as reported by Bloomberg Intelligence.

However, some potential buyers may want to wait for more options from upcoming launches and more stability in the global macro and interest rate environment, according to a note written by BI analysts led by Ken Foong last week. They also noted that developers can price their developments more reasonably to entice purchasers, which might impede the growth of housing values.