Singapore home prices rebound, while record rents ease slightly
- Private home valuations rose by 0.8 per cent from the previous three months, reversing its first drop in three years
- Singapore’s record rents eased as rents for private homes rose 0.8 per cent from the second quarter – the slowest increase since the last quarter of 2020
Private home valuations rose by 0.8 per cent from the previous three months, reversing its first drop in three years, according to data released by the Urban Redevelopment Authority (URA) on Friday. An initial estimate had prices rising 0.5 per cent.
01:37
Singapore government doubles residential property tax for foreigners to 60 per cent
Local demand is “still healthy” although growth will be more muted going forward into 2024, said Ken Foong, a Bloomberg Intelligence analyst. Uncertainties about the economy and high interest rates, along with more supply will pose some downside risk to prices next year, he said.
Home sales have fallen in recent months – albeit during a quiet period for major new projects – reaching their lowest level this year in September. With at least 10 private residential projects in the pipeline for the fourth quarter, developers are likely to be more cautious on pricing amid softening land valuations, wrote Citigroup Inc. analyst Brandon Lee in a note this month.
Still, with locals continuing to chafe at the affordability of homes, authorities have shown little signs of moving away from the curbs, which included the doubling of taxes on property purchases for foreigners to 60 per cent in April.
Meanwhile, Singapore’s record rents, which have also been a significant pain point for expats and locals alike, are also showing further sign of easing. An index of rents for private homes published by the URA rose 0.8 per cent from the second quarter, when it gained 2.8 per cent. That is the slowest increase since the last quarter of 2020.