Jan 10, 2013 | Comments 1
The latest data released by the Urban Redevelopment Authority shows that the price of residential property in Singapore increased to a new record in quarter four of 2012, according to Property Wire. In the fourth quarter of 2012, prices rose by 1.8 percent.
However, prices only rose by 2.8 percent annually, much less than the 5.9 percent increase in 2011.
According to the report, the market segment to see the highest increase was the mass-market, with an increase of 3.4 percent. Most mass-market homes are located in the suburbs. High-end property in Singapore increased in price by 0.8 percent.
Government cooling measures including mortgage tenure curbs and Additional Buyer’s Stamp Duty introduced to slow price growth have been successful, according to analysts.
Separately, some market experts anticipate that the Eurozone crisis will propel high net-worth individuals to invest in Singapore real estate, consequently boosting the high-end property market.
In 2013, experts have predicted a slower start to the year with price increases of up to 3 percent, followed by an increase of 7 percent for the whole year.
Other analysts believe the mass-market segment should record double digit price increases of ten to fifteen percent in 2013, as a result of the sharp increase in land prices.
In the fourth quarter of 2012, resale prices reached record highs, rising 2.5 percent on quarter three. This is the largest growth recorded since quarter three 2011, when prices increased by 3.8 percent.
Total growth in the resale sector for 2012 sat at 6.6 percent, a drop from a 10.7 percent growth in 2011 and a 14.1 percent growth in 2010. Property market experts attribute this drop to a short supply of resale flats available on the market.
In quarter one 2012, the Resale Price Index rose 0.6 percent, followed by 1.3 percent in quarter two and 2 percent in quarter three.