(April 17): Singapore’s home sales rose to a six-month high in March as appetite for homes remained strong.

Purchases of new private apartments increased to 492 units last month, according to figures from the Urban Redevelopment Authority on Monday (April 17). That’s the third month of gains following the plunge to a 14-year low in December when a lack of project launches held back buyers.

“The general market view is still quite positive,” said Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie. The lack of supply compared to demand will continue to support the market, Sun added.

Buoyancy in Singapore property is coming at a time when many overseas markets are struggling due to rising borrowing costs and stubborn inflation. The growth in home sales also shows that the government’s move to raise taxes for buyers of high-end properties in February hasn’t dampened demand.

Home prices could rise as much as 5% in 2023 after gaining 3.2% in the first quarter, thanks to higher rents and favourable supply-demand dynamics, according to Bloomberg Intelligence.

“Yet in the near term, some buyers might wait for greater clarity in the global macro and interest-rate environment, along with more choices from upcoming launches,” said BI analysts led by Ken Foong in a note last week. Some developers might price their projects moderately to attract buyers, potentially leading to slower home-price gains, they added.