Singapore’s home sales rose in May to their highest in almost a year as developers marketed new projects amid declining prices, a government report showed.
Home sales rose to 1,470 units last month from 749 units in April, according to data from the Urban Redevelopment Authority released today. They were at the highest since June 2013 and increased 0.8 percent from the same month a year ago, the data showed.
Sales picked up in Asia’s second-most expensive housing market last month as developers resold projects at discounted prices to lure buyers. First-quarter home prices in the island-state slid for a second consecutive quarter, data released by the URA on April 25 showed, after the government introduced loan measures last June, widening a campaign that started in 2009 to curb speculation in the Southeast Asian city.
“Developers have launched more projects last month and that’s led to renewed buying activity as few were relaunched at discounted prices,” said Nicholas Mak, an executive director at SLP International Property Consultants in Singapore. “Developers are pricing their projects more reasonably.”
Among the developers that began sales of their projects was Hong Realty (Private) Ltd., which sold 590 of 600 units marketed at its Coco Palms project in the east of the city-state, according to the URA. Wealthall Development Pte started marketing its condominium project selling 275 of 400 units marketed, the data showed.
Under the loan measures, lenders must consider a borrower’s debt when granting mortgages, the Monetary Authority of Singapore said last June. Home loans should not lead to a borrower’s total debt-servicing ratio rising above 60 percent and those that do will be considered imprudent, it said.
Mortgage loan growth at 7.3 percent in April was the slowest pace since June 2007, according to data compiled by Bloomberg based on the latest central bank figures.
Singapore was the most-expensive city to buy a luxury home in Asia after Hong Kong, property broker Knight Frank LLP said in a wealth report in April.