(Bloomberg) — Singapore home prices rose in the fourth quarter, the latest marker of a surge that prompted the government to introduce cooling measures last month.
Private property values climbed 5% from the previous quarter, according to Urban Redevelopment Authority flash estimates released on Monday. That’s higher than the 1.1% growth in the third quarter. For the whole of 2021, prices increased by 10.6%, compared with the 2.2% increase in 2020, preliminary data showed.
The government imposed a fresh round of property curbs in December, which include raising additional stamp duties for second-home buyers and foreigners purchasing private residences, amid concerns over affordability. If left unchecked, prices are likely to run ahead of economic fundamentals, the government cautioned at the time.
Buyers have been capitalizing on low interest rates and expectations that prices will climb further as the economy recovers. That fed a property frenzy that generated S$32.9 billion ($24 billion) in sales in the first half of last year alone, double what was recorded in Manhattan over the same six months, driven by demand from the ultra-rich flocking to the Southeast Asian business hub.
Singapore’s central bank last month also warned that household debt is higher than pre-pandemic levels, driven by property loans.
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