Singapore July Home Sales Continue To Drop

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http://www.bloomberg.com/news/2013-08-15/singapore-july-home-sales-drop-to-lowest-since-december-2009.html

Singapore’s home sales in July slid to the lowest since December 2009 as investors balked at new curbs on property loans and developers marketed fewer projects.

Home sales fell to 481 units last month, 73 percent lower from a month earlier, according to data from the Urban Redevelopment Authority released today.

Record home prices amid low interest rates raised concerns of a housing bubble and prompted the government to widen a four-year campaign in January to curb speculation in Asia’s second-most expensive housing market.

Home prices moderated “significantly” after several rounds of cooling measures by the government, the Ministry of National Development said on Aug. 13 in statement on its website in response to lawmakers’ queries in Parliament.

Singapore has been attempting to rein in prices since 2009, when the government barred interest-only loans for some housing projects and stopped allowing developers to absorb interest payments for apartments still being built.

Singapore in June unveiled new rules governing how financial institutions grant property loans to individuals, extending the efforts.

Singapore also plans to raise taxes for luxury homeowners and residential properties that are rented out. The higher tax will apply to the top 1 percent of homeowners who live in their own residences (about 12,000 properties).