Singapore’s private home sales jumped 29% to a five-month high as the city offers what analysts say is a safe haven following events from Japan’s worst earthquake to political turmoil in some Middle East nations.
Developers sold 1,788 homes in April from 1,386 in March, the highest since 1,915 units were bought in November, according to data on the Urban Redevelopment Authority’s website. The figure dropped from 2,208 a year earlier, the data showed.
“It shows that confidence is still there, not just locally but internationally, because of the stable economic and political landscape,” said Donald Han, Singapore-based managing director at Cushman & Wakefield, the world’s largest closely held real estate services company. “It’s a safe haven with the calamities in the Middle East and Japan, and Singapore is deemed as a jewel among investment destinations.”
Singapore’s economy grew at an annual rate of 23.5% in the first three months, driving home prices to a record. The government in January raised the down-payment on second mortgages and extended the sales tax for home sales to four years from three as it added more rules to curb speculation.
In Hong Kong, the government sold three residential sites above analyst estimates last week, highlighting developers’ confidence that property measures in November haven’t damped demand in the city.
Investors are still seeking Singapore properties because most are holding them for more than three years, while the curbs, similar to those in Hong Kong, were aimed at short-term buyers, Han said. “People are not just looking into buying properties for a quick flip,” he said.
The number of homes sold in Singapore also increased in February and March following the measures, according data on the website of government’s urban planning agency. More curbs may be introduced if the second-quarter home prices exceed the 2.2% increase in the first three months, Han said. The advance was the smallest as prices rose for seven quarters.
Source : The Edge – 16 May 2011
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