Singapore’s property frenzy continued as home prices grew more than expected in the last quarter, fueling concerns that authorities may step in to cool the market.
Private property values increased 3.3% in the three months through March, the Urban Redevelopment Authority said on Friday. That’s higher than the preliminary estimate of 2.9% and the biggest gain since the second quarter of 2018.
Singapore’s property market has been heating up in the last few months. Buyers are capitalizing on low interest rates and expectations that prices will climb further after the economy recovers. Prices of public housing flats and luxury homes also jumped, with some breaking records. Sales of private homes reached the highest level in almost a decade.
The latest price increase is stoking concerns that authorities may impose another round of cooling measures, last implemented in 2018. The government cautioned that low interest rates can distort asset prices and the property market shouldn’t run ahead of economic fundamentals.
Singapore joins other countries seeing a property boom. To deal with the frenzy, New Zealand removed tax incentives for property investors. China has also issued a slew of measures to rein in property developers and bank lending to the sector.
