05 Jul 2018
Singapore Home Price Rises Strongly for Second Quarter of 2018
Singapore private home prices posted a second straight quarter of strong gains as the property market extended its recovery from a four-year slump.
An index tracking private residential prices jumped 3.4 percent in the three months ended June 30, according to a flash estimate from the Urban Redevelopment Authority. That builds on a 3.9 percent gain in the first quarter, which was the biggest since the second quarter of 2010.
The rebound in home prices has prompted aggressive land bids from developers as buyers shrug off cooling measures ranging from additional taxes to limits on loans. The government in February raised taxes on home purchases exceeding S$1 million ($764,000) as collective apartment salesreached levels the central bank described as exuberant.
Much of the gains are being driven by so-called en-bloc sales, where a group of owners band together to sell entire apartment buildings, according to Cushman & Wakefield Inc.
“There is a lot of liquidity in the market right now,” said Christine Li, a senior director of research at Cushman & Wakefield. “Money is coming back to owners who participated in collective sales. This recycling of capital is pushing up prices.”