(March 17): Singapore private home sales climbed to a three-month high in February, spurred by locals seeking suburban residences and some trying to make a quick profit. 

Developers sold 1,575 units last month, according to data released on Monday by the Urban Redevelopment Authority. 

The city state is seeing a rebound in apartment sales as interest rates fall and some buyers try to make money from flipping condos. That has prompted analysts to forecast a growing chance of the government introducing more curbs to cool the market. 

In particular, buyers have lapped up mass-market projects outside of the city centre. The two best-performing developments in February were both near public housing estates, where the bulk of locals live. Parktown Residence in the east sold more than 1,000, or 87%, of its units when it launched.

A record 603 new suburban homes were sold for at least S$2 million (US$1.5 million or RM6.7 million) last month, according to realtor OrangeTee Group. “New home sales are projected to continue their strong momentum as more projects will launch for sale,” chief researcher Christine Sun wrote in a note.

Analysts from Barclays plc, Morgan Stanley and Citigroup Inc have warned of possible cooling measures if the buying frenzy continues. Housing affordability has emerged as a major concern among voters, with second-hand public home prices also growing ahead of a general election due this year.

Authorities have already rolled out multiple measures in recent years to tame the market, including hiking a home-buying tax for most foreigners to 60% and ramping up private housing land supply.

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