SINGAPORE: Singapore private home prices rose for a fourth straight quarter and signs of strong demand for new units suggest the boom is likely to persist.
An index for prices of private residences climbed 0.9% in the third quarter from the previous three months, according to final figures released by the Urban Redevelopment Authority on Friday. That was slower than an earlier estimate of 1.2%. A separate index for private home rents rose 1.2%.
The gains coincide with a renewed boom in sales that is set to extend into the final quarter. A recovery in Singapore’s housing market since late 2024 has surprised some observers and pushed up valuations in one of the most expensive places to buy property.
Demand for new projects has been buoyed by a generational transfer of wealth, falling local lending rates and interest from wealthy foreign residents. In October alone, new sales are on track to exceed 1,400 units, according to Bloomberg calculations based on figures released by brokers.
But it also poses a problem for authorities, who tend to be uncomfortable with froth in the sector. They have imposed multiple curbs in the past, most recently a hiking of a duty on owners who sell their properties within a few years.
Price changes of new private homes often affect the second-hand market for cheaper government-built housing, where the bulk of the city-state’s residents live.
Bloomberg Intelligence expects prices to rise by less than 4% in 2025, in line with a 3.9% increase last year. Citigroup Inc. said in a note earlier this month that “policy risk is limited” as long as average price growth is maintained at around 1% on a quarterly basis.
