Residential property prices in Singapore reportedly rose for a successive third quarter despite consistently tempered sales and official red flags signalling high interest rates.
Residential Property Prices in Singapore Still Climbing Despite Declining Sales
Data from the Urban Redevelopment Authority (URA) shows a quarter-on-quarter private residential property increase of 1.5% while sale transaction volumes plunged by approximately 20%.
Bloomberg reports that Chia Siew Chuin, the head of residential research for Singapore at Jones Lang LaSalle Inc., said these statistics support and reflect local property demands. This economic mecca has, to date, managed to avoid the troubles plaguing the property market worldwide. It seems domestic buyers are keeping the price of residential real estate afloat in the face of high interest rates and official limits.
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This activity concerns authorities because they believe people are entering into unmanageable debt in the present economic climate. The URA thinks local mortgage rates will stay high. Bloomberg indicated Morgan Stanley (MS) predicted a 3% decrease in residential house prices.
Analysts believe the decline in certain markets, such as the impact of the 60% stamp duty on luxury apartments, contributes to lacklustre sales of residential properties. According to Bloomberg, unlike Hong Kong, Singapore did not introduce “demand-inducing measures.”
Based on the latest information, the price of second-hand government flats rose by 1.7% from 1.1% in the previous quarter, making it the sixteenth quarterly rise. Suburban property movement contributed to this increase; for example, Lentor Mansion sold roughly 75% of its 533 units after launching in March 2024.
Economists believe these numbers resemble single-event hikes fuelled by residential developments planned for this year.
