Residential housing in Singapore, on April 29, 2023.  (Photo: Bloomberg)

Singapore home sales rose to the highest level in nearly a year, after developers released more inventory in suburban districts.

Developers sold 738 new private units in October, according to data released Friday by the Urban Redevelopment Authority. That compares with 401 in September and is the most since last November.

The increase comes after an otherwise tepid year for home sales. Singapore's government has been trying to cool the real estate market by introducing policies including a sharp hike in stamp duty for foreign buyers.

Developers are now seizing on improved sentiment following interest-rate cuts. Buyer interest has grown, especially among local households and wealthy immigrants.

The bulk of purchases made in October were for suburban projects, including one in the north near Singapore’s border with Malaysia. About 84% of its 348 units sold on the launch day.

Developer City Developments Limited said that 99.7% of the buyers are Singapore citizens and permanent residents.

The recovery is set to continue into November, with six major project launches. One condominium, Chuan Park, has already seen a more than 70% take-up of its 916 units released for sale last weekend.