Demand for new properties in Singapore continues to remain strong as home prices have accelerated their growth in the first quarter. According to flash estimates released by the Urban Redevelopment Authority on Monday, property values grew at a faster pace of 3.2% from the previous three months, marking the 12th straight quarter of growth. This growth comes even as other countries face slumps in their housing markets.
Singapore’s Housing Market Remains Resilient
Despite an economic slowdown and higher interest rates, Singapore’s housing market remains resilient. Home sales reached a five-month high in February as buyers remained undeterred by surging interest rates and inflation. Wong Xian Yang, Cushman & Wakefield Plc’s Singapore head of research, said that private home prices are expected to lock in positive growth this year, albeit at a slower pace of about 3% to 5%.
Supporting the Appetite for Properties
The stable job market, surging rents, and sustained demand from those who wish to upgrade their public homes due to rising resale prices are supporting the appetite for properties in Singapore. The reopening of China could also bolster market sentiment and contribute slightly to overall demand.
Moreover, the city-state has also bagged the top spot for growth in residential rents in the last quarter of 2022, overtaking New York in annual rankings. Rents for private apartments surged 36% in February from a year earlier, according to a report by real estate portal SRX.
According to Bloomberg
According to Bloomberg, in February Singapore raised taxes for buyers of higher-value properties in its annual budget, months after introducing cooling measures, underscoring the government’s confidence in the local housing market.
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