Private home prices continue to rise in Singapore in spite of several extra curbs on property that were imposed by the Government in order to combat risks linked to sharp price corrections which could be damaging for the economy. The private home prices continue rising even though the increase is the slowest observed over the last 5 quarters. As per several reports, prices of private residential property went up by 0.5% over the three months ending on the 30th of September, 2018 in comparison to an increase in prices by 3.4% for the June quarter.
Prices of residential apartments went up by 1.2% in the previous quarter across prime districts in Singapore as compared to an increase of 0.9% over the three months till the 30th of June, 2018. Prices of housing units increased by 0.1% in suburban zones after increasing by around 3% in the quarter before the last one. Prices however went down by 0.8% near prime localities after they gained 5.6% in the quarter till the end of June 2018 as per reports.
The Government has already imposed several decisions for cooling the property sector in Singapore after home prices rose hugely over the first 6 months of 2018. Demand is steady for private residential housing and this is fuelling growth albeit at a slower pace than before. As per the new regulations, those who are applying for their first housing loan, will have more stringent limits for borrowing. They will now have to pay more cash initially and for foreign buyers in the residential space, added stamp duty has been scaled up to 20% from 15% earlier. The extra charges will apply from the second home purchase onwards in case of Singapore citizens. However, there are some areas where prices have not gone up like most parts of Singapore. For example, Sentosa Cove, a residential island zone, has witnessed average prices falling by close to 30% from the peak threshold in the year 2011. These areas offer good bargains for investors and buyers alike.
