Singapore Home Sales Rise Amid Positive Economic Outlook

(Bloomberg) -- Singapore home sales rose in November, following demand from locals betting that prices could rebound next year as the economy recovers from the pandemic.

Purchases of new private apartments rose 18% last month to 767, from 645 in October, according to Urban Redevelopment Authority data released Tuesday.

Singapore’s property market has weathered the city’s worst recession on the back of low interest rates and government stimulus. And buyers are coming back to the market, with the government forecasting the economy will expand 4% to 6% next year due to easing of travel restrictions and local safety rules. The city-state last week lifted border restrictions for visitors from Taiwan and is eyeing lifting virus measures which could see the maximum capacity for public gatherings raised from five to eight.

“With countries already buying vaccines and Singapore expected to ease more virus measures in the coming months, there’s optimism in the market that home prices will jump,” said Christine Sun, head of research and consultancy at OrangeTee & Tie. “Locals who want to purchase a home to live in and investors want to capitalize on current prices. So, they’re coming out to buy.”

©2020 Bloomberg L.P.