Singapore home prices rise, sign of a resilient market

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There is still an overhang of unsold units in the city-state. FMTNews Singapore

SINGAPORE: Singapore property prices rose more than initially estimated last quarter, a sign of resilience more than a year after curbs were imposed to cool the housing market.

Private residential prices increased 1.3% in the three months ended Sept 30, data from the Urban Redevelopment Authority released Friday showed.Prices of landed properties increased 1% last quarter, compared with a 0.1% decline the previous quarter, the data showed.At the end of the quarter, there was 50,964 uncompleted private residential units in the pipeline, up from 50,674 units in the previous quarter, the data showed.

“The positive market performance may not signal a need to put a brake on the property market now by implementing more cooling measures in the near term,” said Christine Sun, head of research & consultancy at OrangeTee & Tie Pte. The risk of a housing bubble forming is “rather remote” as that is usually caused by a significant run-up in home prices, runaway land prices, and excessive buying fuelled by “exuberant spending,” she said.

Sun cited the slower pace of price increases, the cooling of the collective sales market and more measured recent land bids as mitigating factors.

 

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