There is now more tangible evidence that the Singapore real estate market is in full-blown recovery mode. Singapore property prices recorded the biggest price increase in eight years, rising 3.1 percent during the first three months of 2018, according to the Urban Redevelopment Authority.
“There’s no denial we’re entering an escalating market in light of higher land prices,” Desmond Sim, CBRE’s Southeast Asia head of research, told Bloomberg.
Residential prices in Singapore had declined for 15 consecutive quarters before reversing course late last year. This marks the third straight quarter home prices in the city-state increased with developers now aggressively looking to acquire land for new projects.
“Singapore’s residential market has passed its inflection point, embarking on an exciting recovery journey,” Christine Li, director of research at Cushman & Wakefield, commented. “With brighter economic prospects and improved market sentiment in the next two to three years, developers are increasingly sourcing land sites to ride the wave of growth for the rest of the decade”.
The recovery of Singapore property prices highlights the fact that the government’s cooling measures may finally be wearing off. However, the government raised taxes on home purchases exceeding SGD1 million (USD 764,000) in February and may look to roll out a new round curbs in the future.
Singapore condominium prices on the rise
Resale condominium and private apartment prices hit a new peak, rising 1.9 percent in February from the previous month, the Straits Times reported. This was the biggest increase since January 2014 and significantly beat estimates from industry analysts.
The rising residential resale prices aren’t limited to one area. The core central region (CCR), rest of the central region (RCR) and outside central region (OCR) all recorded significant price growth in February. Resale condominium and private apartment prices are up by more than 7 percent during the last 12 months.
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