Singapore home prices climb to a record in the third quarter

PUBLISHED : Wednesday, 03 October, 2012, 12:00am
UPDATED : Wednesday, 03 October, 2012, 5:00am

Singapore home prices climbed to a record in the third quarter after developers sold more homes, a report showed.

The island state's private residential property price index rose 0.5 per cent to 208 points in the three months ended September 30, according to preliminary estimates released by the Urban Redevelopment Authority. The index rose 0.4 per cent in the previous quarter, which was also at a record.

The latest recovery in prices comes as the government has decided to cap the number of homes that can be developed in suburban projects to curb an increasing trend of so-called shoebox flats that are smaller in size.

"Buyers, both foreigners and locals, are slowly coming back," said Margaret Thean, executive director at DTZ Holdings, before the figures were released. "We expect to see more activity and interest in luxury housing in the next one to two quarters with a few projects gearing up for launch."

The government's plan to limit the number of homes for apartment projects outside the city's central area will be implemented from November 4.

The proportion of purchases made by Singaporeans increased to 35 per cent this year from 19 per cent last year, almost on a par with foreigners, DTZ Holdings said.

The number of home purchases made by Singaporeans this year had exceeded that for the whole of last year, DTZ said. This showed that there was demand from cash-rich local buyers who have been waiting on the sidelines for more attractive pricing, it said.