Singapore sustains comeback in home sales with gains in December

A general view shows the prime district area around Orchard Road with hotels, shopping mall and residential housing on March 6, 2014 in Singapore.(AFP/Roslan Rahman)

Singapore sustained a comeback in home sales in December, boosting an annual tally that was already the highest since 2013.

Developers sold 431 units, up from 367 a year earlier, according to Urban Redevelopment Authority data released Monday. For the year, home sales reached about 10,682 units.

Rising prices and climbing sales are reinforcing signs that the city-state’s residential market is emerging from a four-year slump even as officials watch cautiously after previous overheating. While a recovery in home prices is not a cause for concern, “exuberance” in the so-called en-bloc market for redevelopments may not be warranted, Ravi Menon, the managing director of the Monetary Authority of Singapore, said at a conference Monday.

Home prices may rise as much as 10 percent this year, according to analysts at Credit Suisse Group AG, while Morgan Stanley and OCBC Investment Research expect as much as an 8 percent increase, according to reports from the brokerage firms. Private residential prices rose for a second straight quarter in the three months ended December 31.

In December, companies launched new units in older projects including Seaside Residences. – Bloomberg

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