(Bloomberg) -- Private home sales in Singapore jumped to the highest in eight months as a broader economic slowdown spurred investors to park their money in a property market known as a safe haven.
Developers in the city-state sold 1,178 apartments in July, an increase of 43% from the previous month, and the highest level since November, according to data from the Urban Redevelopment Authority on Thursday. Purchases by foreigners more than doubled to 82 units, the highest in a year.
The robust sales of high-value apartments were particularly noteworthy. Already 49 units worth more than S$5 million ($3.6 million) were sold between January and July compared with 30 units for the whole of last year.
“The growing global economic uncertainties may see more investors parking their funds here as Singapore's property market is known to be a safe and stable haven for capital preservation and appreciation,” consultancy OrangeTee & Tie Pte said in a report.
Other reasons OrangeTee attributed to the rise include buyers returning to the market after the June holidays, and developers fast-tracking project launches ahead of the lunar seventh month in August, which is considered inauspicious by Chinese homebuyers.
In view of this, sales will probably dip in August before picking up again in September and October as new projects come on the market, according to Colliers International Group Inc. It expects private home prices to rise 1% this year given Singapore's economic growth forecast of 0% to 1%.
To contact the reporter on this story: Yongchang Chin in Singapore at ychin22@bloomberg.net
To contact the editors responsible for this story: Joyce Koh at jkoh38@bloomberg.net, Jasmine Ng, Dan Murtaugh
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
