Singapore – Cooling Measures Introduced to curb Rising Home Prices

Singapore home sales rose to a record last year, fueling prices to an all-time high and prompting the government to introduce cooling measures last week.

Home sales climbed to 1,410 units in December from 1,087 units in November, according to data released by the Urban Redevelopment Authority today. Home sales reached 22,699 units in 2012, according to calculation by Bloomberg News based on the government data, which dates back to 1996.

Singapore home prices reached a record high in the fourth quarter amid low interest rates, raising concerns of a housing bubble and prompting the government to introduce its seventh round of cooling measures on Jan. 11.

“Sales volumes are likely to dampen in the coming months,” Png Poh Soon, director of valuation and head of consultancy and research at Knight Frank Pte in Singapore, said in a note today. “Whilst pent-up home buying demand is strong, the higher stamp duties, tighter loan-to-value limits and higher cash down payment would deter home buyers, who do not have the cash resources for their planned purchases.”

Bloomberg

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