Singapore’s home sales fell 68 percent in June as developers marketed fewer projects amid cooling demand in Asia’s second-most expensive housing market following a slew of property measures.
Home sales fell to 482 units last month from 1,488 units in May, according to data released today by the Urban Redevelopment Authority. The sales in June were the lowest since March when developers sold 480 units, the data showed.
The government began introducing housing market curbs in 2009 with some of the strictest measures implemented in 2013, including a cap on debt at 60 percent of a borrower’s income, higher stamp duties on home purchases and an increase in real estate taxes. Home prices in the Southeast Asian city slid for a third consecutive quarter in the three months to June, the longest losing streak in five years, the URA said earlier this month.
“The new project launches were few as developers seem to be monitoring the market,” said Donald Han, managing director of Chesterton Singapore Pte, a real estate consulting company. “I don’t see too many new launches in July either so we may see another muted month.”
Among the developers that began sales of their projects was Hong Realty (Private) Ltd., which sold 55 of 100 units marketed at its Coco Palms project in the east of the city-state, according to the URA. RH Tampines Pte started selling its condominium project with 19 out of 80 units sold, the data showed.
Under the current new loan framework, mortgages shouldn’t push a borrower’s total debt-servicing ratio above 60 percent and those that do will be considered imprudent, the Monetary Authority of Singapore said in June 2013. Mortgage loan growth at 7.6 percent in May was the second-slowest pace since June 2007, data compiled by Bloomberg based on MAS figures showed.
Singapore was the most-expensive city to buy a luxury home in Asia after Hong Kong, property broker Knight Frank LLP said in an annual wealth report.
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