Developers sold 2,259 housing units last month, up from 1266 units in November, according to data released by Singapore’s Urban Redevelopment Authority this week.

Last year saw a record level of housing transactions, particularly from investment demand, leading to the government taking further action to be tighter on property ownership for investment, as well as on foreign buyers, with the view of curbing speculative buying.

“The reality we face is that interest rates are extraordinarily low, globally and in Singapore, and continue to add fuel to our property market. We have to take this further round of measures now, to check recent market trends and avoid a more serious correction in prices further down the road,” deputy prime minister and minister for finance, Singapore, Tharman Shanmugaratnam, said in a recent statement announcing the intervention in the property market.

In addition, real estate specialist Knight Frank said in a report released yersterday: “The large supply of newly launched private residential projects over the past year, combined with attractive perks and features offered by developers, induced buying interest and spurred price increases.”

Surge

According to the firm, prices of private properties have increased by 59 per cent over 3.5 years from the trough of the property cycle to the current peak level.

“The seventh cooling measures can be considered as the most severe and most encompassing that we have seen from the government to date after six earlier rounds,” said Knight Frank.

The government measures implemented this week included raising buyer’s stamp duty and the introduction of a new seller’s stamp duty, as well as tightening financing conditions for purchases.

Looking ahead, Knight Frank expects sales volume in the new sales and resale markets to declerate in the coming months. It said some investors may choose to stay at the sidelines, waiting to see where home prices will be in the next few months before making a decision, while others may switch attention to overseas properties to search for more attractive yields.

Developers are likely to hold back un-launched developments until after Chinese New Year. Meanwhile, launched projects are likely to see enhanced marketing strategies, such as furniture vouchers and greater discounts to entice home-buyers, Knight Frank said.