In spite of the adverse economic conditions that are wreaking havoc on real estate markets throughout the globe, condo sales in Singapore made a strong comeback in September and reached their second highest level of the year.
According to numbers released by the Urban Redevelopment Authority on Monday, the number of newly built private flats that were purchased over the previous month skyrocketed to 987. Due to a shortage of new launches, just 437 units were sold in August, which was more than twice the number of sales that were recorded in September.
The introduction of two big suburban developments, of which 80 percent of the homes were purchased within the month, was the primary factor that contributed to the increase in sales. In Singapore’s private residential market, buyers wanting to upgrade from public housing and an inflow of expatriates, headed by wealthy mainland Chinese, have flooded the market, brushing off worries about interest-rate rises that have damaged markets from Sweden to New Zealand.
However, according to Wong Xian Yang, the head of research for Cushman & Wakefield Plc in Singapore, the market for properties in the city-state would turn lukewarm by the end of the year. This might be due to a new wave of property regulations as well as a murky economic outlook.
According to Wong, “the market might have a knee-jerk response in the fourth quarter as purchasers and developers examine the effect of the most recent cooling measures.”
It’s possible that sales are being held back by the fact that there aren’t enough fresh project developments being brought to market.