Singapore May Home Sales Drop 45% as Developers Cut Offerings

Singapore home sales dropped 45 percent in May as developers offered fewer projects.

Developers sold 638 units last month compared with a revised 1,167 units in April, according to data released Monday by the Urban Redevelopment Authority.

Among companies that put up projects for sale, CapitaLand Ltd.’s Sky Habitat sold 12 of 139 units marketed in a northern suburb, according to data from the authority. Wheelock Properties (Singapore) Ltd.’s The Panorama condominium sold 44 units of the 60 it offered, the data showed.

The government began introducing residential property curbs in 2009 as low interest rates and demand from foreign buyers raised concerns that the property market was overheating. They included a cap on debt repayment costs at 60 percent of a borrower’s monthly income, higher stamp duties on home purchases and an increase in real estate taxes.

Home sales dropped to a six-year low in 2014 as the policies hurt demand. They fell by half to 7,316 units last year from 2013, the lowest since 2008, according to data from the authority.

Prices surged 40 percent in the five years to 2013 to a record. They fell 4 percent in 2014, the URA figures showed.

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