Singapore’s property market has experienced a strong resurgence in recent months, fuelled by a surge in demand for residential and commercial properties. According to the latest data from the Urban Redevelopment Authority (URA), property prices in Singapore rose by a record 10.6% in the first quarter of 2021, the highest rate of growth since the last quarter of 2013.
Rise in Demand for Residential and Commercial Properties
The strong growth in property prices can be attributed to a rise in demand for residential and commercial properties in Singapore. The demand for residential properties has been driven by the growing population, with the number of households in Singapore increasing by 3.2% in 2020. The demand for commercial properties, on the other hand, has been fueled by the increasing number of businesses setting up shop in Singapore, which is seen as a stable and attractive destination for investments.
Strong Growth in Prices of New Launch Properties
The strong growth in property prices has been particularly evident in the prices of new launch properties. According to the URA, the prices of new launch properties in Singapore rose by 11.6% in the first quarter of 2021, the highest increase since the last quarter of 2014. This is due to the rising demand for new launch properties, as well as the attractive prices and incentives offered by developers to entice buyers.
Government Policies to Cool Property Market
The Singapore government has been taking steps to cool the property market and ensure that prices remain affordable. The government has introduced several cooling measures, such as raising the Additional Buyers’ Stamp Duty (ABSD) and tightening loan-to-value limits. The government has also rolled out a Voluntary Early Redemption Scheme (VERS) which allows homeowners to voluntarily redeem their home loans ahead of schedule.
Outlook for Singapore Property Market
Despite the government’s efforts to cool the property market, analysts believe that property prices in Singapore are likely to remain buoyant in the coming months, supported by strong demand for residential and commercial properties. The demand for properties is expected to remain strong due to Singapore’s attractive economic fundamentals and stable political environment.
Overall, the outlook for the Singapore property market remains positive, with property prices expected to continue to rise in the short to medium term.