Singapore’s private property sales fell 52% compared to September 2012, signalling that the Singapore Government’s efforts to cool the rising property market has some effect.
The number of caveat transactions lodged in the Urban Redevelopment Authority (URA) website fell from 2,621 units in September 2012 to 1,246 units. However, the number of transactions has increased 65 percent from 756 units sold in August. Analyst has attributed this to the greater number of projects launched in September compared to August which falls on the traditional Hungry Ghost Festival.
Record home prices amid record low interest rates has prompt the Singapore Government to induce a series of measures which include higher tax levies for foreigners as well as additional buyer stamp duties for multiple property owners. In addition to tax levies and sales tax, the Singapore Government has introduced a new Total Debt to Service Ratio (TDSR) that essentially restricts the amount of loan which banking institutions can lend to prospective Hillford Condo buyers.
Singapore Private Property Price Index rose 0.4 percent to a record 216.2 points in end 30 September. However, this was the smallest gain since the 1st quarter of 2012.
Among the developers that began sales of their projects was United Venture Development (Thomson) Pte, which sold 264 units of 320 marketed at its “Thomson Three” project last month, the data showed. Sky Vue, offered by Allamanda Residential Development Pte, sold 433 of 505 units offered.
Analyst will be looking at the results in the upcoming launch Hillford Condo in Jalan Jurong Kechil as well as The Venue in Potong Pasir. This should give a clearer picture where will the property prices in Singapore heading
Credit: Bloomberg News