Home sales dip 64pc on cooling measures, Hungry Ghost month

SINGAPORE: Private home sales here tumbled 64 per cent last month to the least in six months as government cooling measures took effect and developers marketed fewer projects in a period considered inauspicious by Chinese home buyers.

Developers in the city-state sold 616 units last month, said the Urban Redevelopment Authority in a statement yesterday.

That compares with 1,724 units in July and 654 apartments in June, the data showed.

“Last month’s sales were low but that was expected as buyers rushed in to buy ahead of the curbs in July,” said Nicholas Mak, executive director, research and consultancy at SLP International Property Consultants here.

“That, coupled with the Hungry Ghost festival, acted as a double whammy for the month.”

Singapore took renewed steps in July to cool property market after home prices rose more than seven per cent in the first six months of the year.

The rush of transactions was fueled by aggressive land bids from developers and en-bloc transactions, which is where a group of owners band together to sell entire apartment buildings.

Under the new rules, individuals taking out their first housing loan face stricter borrowing limits, meaning they have to stump up more cash upfront. For foreign purchasers of residential property, the additional buyer’s stamp duty was increased to 20 per cent from 15 per cent.

For Singapore citizens, the extra charges only apply from their second home purchase.