Singapore housing rates climb for 12th quarter despite global recession
Despite a slowdown in the global housing market, home prices in Singapore continued to rise for a 12th consecutive quarter, prompting authorities to increase property taxes on foreign buyers.
According to data released on Friday by the Urban Redevelopment Authority, property values increased by 3.3% in the first three months of the year. The prior quarter’s increase was 0.4%, whereas the early projection was 3.2%.
While markets from Hong Kong to London have experienced price drops, Singapore’s housing market like Normanton Park and Normanton Park Pricing has remained robust. As the housing shortage eased in March and buyers remained unfazed by rising interest rates and inflation, home sales jumped to their highest level in six months. As a result of newcomers from China and elsewhere buying up luxury real estate, Singapore has taken measures to cool the market. This week, the government increased the stamp duty on second homes and doubled it for foreign buyers, to a total of 60%. In its budget for the month of February, Singapore additionally increased taxes for purchasers of luxury homes.
Even while the increase in taxes for foreign purchasers isn’t completely unexpected, Citigroup Inc. analyst Brandon Lee called it “draconian” in a note. Given the robust labor market, Citigroup expects price growth to moderate over the next few quarters to around 2%, but not decline.
Singapore’s rents are also on the rise, and the city-state surpassed New York’s to become the fastest-growing in the fourth quarter of 2022. According to data compiled by real estate marketplace SRX, private flat rents increased by 36 percent in February compared to the same month a year ago.
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