Domestic demand boosts Singapore property growth
Growing population and low interest rates are strengthening the sector, writesJosephine Bond
Singapore's property market is continuing to attract buyers and investors amid record-low borrowing costs and robust demand from its growing population.
Although home prices are expected to remain relatively flat this year, as global economic uncertainty prevails, private home prices edged up 0.4 per cent in the second quarter of the year, according to the Urban Redevelopment Authority.
Demand for residential homes remained intact despite a series of cooling measures implemented by the government last year, thanks largely to a low-interest rate environment and population growth that has increased by 25 per cent over the past decade.
Primary home sales have been witnessing stellar growth despite concerns over the Additional Buyer's Stamp Duty (ABSD) - brought in last December as a cooling measure - and uncertainties in stock markets and excessive investment demand.
According to Knight Frank Singapore, developers launched and sold a record number of new homes in the first five months of this year, an increase of 54 per cent compared to the same period last year.
On the retail side, the leasing and sales markets are picking up pace despite sluggish rents as tenants compete for prime spaces.