Singapore home prices rose to the highest in more than two years last quarter as the city-state forecasts a recovery from itsworst recession since independence as Covid vaccinations are rolled out and restrictions eased.
Property values increased 2.1% in the three months ended Dec. 31, according to a preliminary estimate by theUrban Redevelopment Authority released Monday. That’s the biggest increase since the first quarter of 2018, when prices surged 3.9%.
The gain marks thethird consecutive quarter of growth, defying concerns home prices would decline amid lockdowns and border closures in the tourism and trade-dependent island. Instead, Singapore joins countries fromAustralia andNew Zealand to theU.K. and theU.S. where property markets have surged during the pandemic, as record low interest rates fuel demand.
Read more: Global House Price Boom, Fueled by Stimulus, Faces 2021 Risks
Real estate values could rise further this year, as the government expects the economy toexpand by 4% to 6%, rebounding from last year’s 5.8% contraction. The Southeast Asian nation haseased social distancing measures and started its vaccination program with health-care workers getting the first shots.
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