Home Prices hitting Record Highs in Q3 – Singapore

Singapore home prices climbed to a record in the third quarter after developers sold more homes, a government report showed.

The island state’s private residential property price index rose 0.5 percent to 208 points in the three months ended Sept. 30, according to preliminary estimates released by the Urban Redevelopment Authority today. The index rose 0.4 percent in the previous quarter, which was also at a record.

The latest recovery in prices comes as the government in September decided to cap the number of homes that can be developed in suburban projects to curb the increasing trend of so-called shoebox apartments that are smaller in size.

“Buyers, both foreigners and locals, are slowly coming back,” said Margaret Thean, executive director at DTZ Holdings Plc’s residential business in Singapore, before the figures were released. “We expect to see more activity and interest in luxury housing in the next one to two quarters with a few projects gearing up for launch.”

The government plans to limit the number of homes for apartment projects outside the city’s central area to “discourage” shoebox units, the authority said in a statement posted on its website on Sept. 4. The new rules will be implemented from Nov. 4.

Via – Bloomberg

 

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