SYDNEY: Property sales in Singapore jumped 30% last month, led by demand for luxury condos.
A total of 952 private homes were sold in May, up from 735 in April, according to Urban Redevelopment Authority of Singapore data released Monday.
Almost a third of the properties sold fetched more than S$2,000 ($1,460) per square foot, and 48 new homes sold for S$3 million or more, OrangeTee & Tie Pte said.
The city-state’s property market may be benefiting from investors shifting money into safe assets, according to Christine Sun, head of research and consultancy at OrangeTee.
“Geopolitical instability and social unrest around the region, coupled with the intensifying U.S.-China trade war, may trigger ‘flight-to-safety’ behavior among investors,” Sun said.
“Many may cut back on more volatile equity investments and choose safer assets, or shift their funds from higher-risk countries to countries with more stable markets like Singapore.”
Sales were also buoyed by the launch of two new condo developments, Parc Komo and Amber Park, with both having a take-up rate of more than 25%.
“These take-up rates can be considered healthy under the current market circumstances,” said Ismail Gafoor, chief executive officer of PropNex Realty.
The May figures take total private new home sales, excluding executive condominiums, to 3,525 in the first five months of the year, a 2.6% increase over the same period in 2018.
“For the rest of the year, we are expecting consistent sales performance, with an estimate of 8,500 to 9,000 private new homes to be transacted,” Gafoor said. - Bloomberg