SINGAPORE — Private home sales in Singapore tumbled 64 per cent in August - the lowest in six months - as government cooling measures took effect and developers marketed fewer projects during the Hungry Ghost Festival, a period considered inauspicious by Chinese home buyers.

Developers in the city-state sold 616 units last month, the Urban Redevelopment Authority said in a statement Monday (Sept 17). In July, 1,724 units were sold and in June, 654 apartments, the data showed.

“August sales are low but that was to be expected because buyers rushed in to buy ahead of the curbs in July,” said Mr Nicholas Mak, executive director, research and consultancy at SLP International Property Consultants in Singapore. “That, coupled with the Hungry Ghost festival, acted as a double whammy for the month.”

Singapore took renewed steps in July to cool the island’s property market after home prices rose more than 7 per cent in the first six months of the year. The rush of transactions was fueled by aggressive land bids from developers and en-bloc transactions.

Under the new rules, individuals taking out their first housing loan face stricter borrowing limits, meaning they have to stump up more cash upfront. For foreign purchasers of residential property, the additional buyer’s stamp duty was increased to 20 per cent from 15 per cent. For Singapore citizens, the extra charges only apply from their second home purchase.

An index tracking private residential prices jumped 3.4 per cent in the three months ended June 30, according to URA data. That built on a 3.9 percent gain in the first quarter, which was the biggest increase since the second quarter of 2010.

^{(Above) Property cooling measures in Singapore. Source: Bloomberg}

For the entire seventh month of the lunar calendar, which this year spanned from Aug 11 to Sept 9 this year, the Chinese remember and revere their deceased relatives who are said to return to roam the earthly realm. The period is considered inauspicious to make any new purchases, including a house.  BLOOMBERG