Singapore home sales slumped to the lowest in 21 months as the residential market slows on cooling measures and higher property taxes.
Purchases of new private apartments fell to 527 units in February, Urban Redevelopment Authority figures showed Tuesday. That is 22.5% lower than the 680 units sold in the previous month and the lowest since May 2020, when 487 apartments were sold.
“Sales take up was notably slower last month as buyers were more cautious and stayed on the sidelines,” said Christine Sun, senior vice president of research and analytics at OrangeTee & Tie. “Real estate is a highly sentiment-driven market.”
The lacklustre sales underscore weaker buyer confidence after the Singapore government raised taxes on high-end properties in February and moved to quell a surge in home prices last year.
Singapore’s home sales may also be affected as the war in Ukraine roils equity markets and raises the prices of commodities, Sun said. Just a single project launched in February, she said, amid lower activity during the Lunar New Year holidays.
- In Singapore: Expats with super skills sought
Like other countries around the world, Singapore’s residential property market has remained resilient during the pandemic, with sales and prices surpassing expectations despite viewing restrictions.
That prompted policy makers to introduce residential property curbs to maintain affordability, adding higher stamp duties for second-time home buyers and foreigners purchasing private property as well as tighter loan limits in December.
Sales may still pick up in the coming months given there’s healthy underlying demand for private apartments, said Wong Xian Yang, head of research at Cushman & Wakefield Plc in Singapore.
Amid rising prices in the public residential market, owners may cash out and upgrade to private apartments, he added.
