Singapore home prices climbed to a
record in the second quarter as gains in suburban housing values
accelerated, prompting the government to implement new measures
on property loans.
The island-state’s private residential property price index
rose 1 percent to 215.4 points in the three months ended June
30, extending a 0.6 percent increase in the first quarter,
according to revised figures released by the Urban Redevelopment
Authority today. The pace of gains in prices in the suburbs more
than doubled from the previous three months.
Record home prices amid low interest rates raised concerns
of a housing bubble and prompted the government to widen a four-year campaign to curb speculation in Asia’s second-most
expensive housing market. Singapore on June 28 unveiled new
rules governing how financial institutions grant property loans
to individuals.
Apartment prices fell 0.2 percent in prime districts in the
second quarter, compared with a 0.6 percent gain in the previous
three months. Those in the suburbs climbed 3.8 percent, compared
with the 1.4 percent increase in the previous quarter, according
to today’s government data.
Suburban Demand
Suburban demand was boosted by Singaporeans upgrading from
living in apartments built by the state to private condominiums.
About 82 percent of Singaporeans reside in government-built
units, according to Housing Development Board’s website.
CapitaLand Ltd. (CAPL) may alter the size of its apartments as it
seeks to improve affordability to combat government measures,
Lim Ming Yan, president and chief executive officer at
Singapore’s biggest developer, said in a Bloomberg Television
interview in Singapore yesterday.
“We want the right sizing, put in the right layout, so our
users will find it a lot more user-friendly and at the same time
something they can afford,” Lim said.
Singapore is Asia’s most-expensive housing market after
Hong Kong, according to a Knight Frank LLP and Citi Private Bank
report released last year that compared 63 locations globally.
Hong Kong homes cost an average $28,300 per square meter in 2011
compared to Singapore where an apartment would cost $25,600 per
square meter, the report showed.
Slowing Sales
Developers sold 4,538 units in the second quarter, 16
percent lower than the previous quarter, the data showed.
Private-home rents increased 0.3 percent in the quarter.
The government measures in January included an increase in
the stamp duty for homebuyers by between 5 percentage points and
7 percentage points, with permanent residents paying taxes when
they buy their first home. Singaporeans will have to pay the
levy starting with their second purchase.
Office prices climbed 1.5 percent in the quarter ended June
while rentals rose 0.2 percent, after declining 0.2 percent in
the first quarter, the data showed. Prices of industrial space
grew at a slower pace, climbing 0.5 percent compared with the
2.9 percent increase in the March quarter.
To contact the reporter on this story:
Pooja Thakur in Singapore at
pthakur@bloomberg.net
To contact the editors responsible for this story:
Andreea Papuc at
apapuc1@bloomberg.net
Singapore Home Prices Climb to Record as Government Curbs Loans
Munshi Ahmed/Bloomberg
Traffic travels along the Benjamin Sheares Bridge, past a condominium development, in Singapore.
Traffic travels along the Benjamin Sheares Bridge, past a condominium development, in Singapore. Photographer: Munshi Ahmed/Bloomberg
Singapore Home Prices Climb to Record as Loan Curbs Imposed
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