SINGAPORE HOME PRICES RECORD SLIGHT INCREASE
Sep 11, 2012
Singapore is among a list of major global cities that recorded residential price increases in 1H2012, according to the Savills’ World Cities Review.
The city-state’s housing market saw a price uptick of 1.5 percent in 1H2012, compared to 3.6 percent over the same period last year.
With a price jump of 7.4 percent in 1H2012, Hong Kong was ranked first among the 10 global cities, while Moscow and Sydney clinched second and third spots, at 5.5 and 3.7 percent respectively.
“Capital values in Hong Kong remain buoyed by strong demand for real assets, despite very modest growth in underlying rental values,” the report noted.
While government intervention and tight availability of mortgage loans caused short-lived price declines last year, Hong Kong’s housing market actively rebounded in the first half, said the report.
As for Singapore, the slower capital value growth was attributed to “the health of its rental market, with demand driven by tenants coming from overseas”.
“Both capital and rental value price growth for the SEU (Savills Executive Unit) slowed in the first half of 2012, to 1.5 percent and -1 percent respectively, compared to 3.6 percent and 4.2 percent in the previous half year.”
As such, the government’s market cooling measures to increase supply have been effective, the report noted.
Info courtesy - PropertyGuru.com.sg