Singapore’s new private home sales fell in September as developers held back on major project releases during a traditionally quiet period.
Developers sold about 255 units in the month, according to data released Wednesday by the city’s Urban Redevelopment Authority. While that’s the lowest figure this year, it comes on the heels of a blowout in August.
The pause had been widely anticipated, due to its overlap with the seventh month of the Chinese Lunar calendar. Property firms tend to hold back on project releases during the period to avoid turning off buyers who see it as an inauspicious time to purchase homes.
Already, the first major project to be released this month has sold more homes than all of September — selling almost all of its 666 units last weekend. It’s also a sign that the home-buying frenzy is set to continue, despite a spate of government measures in recent years to quell market exuberance.
Another three projects slated for release in October are expected to see “similarly healthy take-up,” Citigroup Inc. analyst Brandon Lee wrote in a note Monday, saying that should support developers’ share prices. An index of Singapore-listed real estate developers and operators has surged nearly 40% this year.
See also: China's biggest builders hobble toward end of restructuring
Factors ranging from falling local lending rates to appetite from wealthy long-term foreign residents have helped drive up demand for new units, which are typically put up for sale years ahead of completion. That’s also driven up valuations, with home prices rising an estimated 1.2% in the third quarter from the preceding three months.
