Property prices still rising in Singapore despite govt curbs

The price of new homes in Singapore increased to a new record by 1.8% in the fourth quarter of 2012, the latest figures from the Urban Redevelopment Authority show.

On an annual basis prices increased by 2.8%, much less than the 5.9% increase in the previous year.

The mass property market segment, which are commonly units located in the suburbs, increased by most, up 3.4%. The high end of the market saw price increased of 0.8%.

According to analysts the government’s market cooling measures, such as the Additional Buyers’ Stamp Duty and the latest mortgage tenure curbs, have been slowed price growth.

Some analysts expect the Eurozone crisis to drive high networth individuals to invest in real estate in Singapore, boosting the high end property market. Overall they expect a slower start to the year with price increases of up to 3% and then an overall increase of 7% for the whole of the year.

Others think that the mass market segment should also see double digit increases of 10 to 15% in 2013 due to a rapid increase in land prices.

Resale prices also reached a record high in the fourth quarter of 2012, up 2.5% on the previous quarter, the largest growth since the third quarter of 2011, when prices increase by 3.8%.

Total growth in this sector for 2012 was 6.6%, down from 10.7% in 2011 and 14.1% in 2010. Experts say this was due to a short supply of resale flats in the market.

The Resale Price Index rose 0.6% in the first quarter of 2012, 1.3% in the second quarter and 2% in the third quarter.