Singapore is defying a global property downturn, fuelling concerns about affordability within the city-state. Nearly six in 10 people who want to rent or buy said they find property becoming more unaffordable, according to a poll of 790 respondents conducted in July by 99 Group, which operates online home rental portals.
The price jumps are fueled by a shortage in supply due to construction setbacks during the Covid-19 pandemic, and demand spikes from people looking for upgrades and an influx of well-to-do foreigners. Buyers are brushing aside concerns about rising interest rates that have dented property markets from Australia to New Zealand.
“Interest rate hikes do not seem to have a significant impact on new home sales” in Singapore, said Christine Sun, Senior Vice-President of Research & Analytics at OrangeTee & Tie Pte. Property prices, she added, are ‘more supply-driven rather than sentiment-driven.’
The property price rises “are fuelled by a shortage in supply due to construction setbacks during the Covid-19 pandemic, and demand spikes from people looking for upgrades and an influx of well-to-do foreigners”. Meanwhile, Alan Cheong, Executive Director of Research at Savills Plc, said, ‘Wealthy locals and high-earners moving to the city-state are pushing up prices”.
Rent in the island republic reportedly “surged the most among 30 cities globally in the first half, tying with New York”. It also stated that ‘condominium resale prices rose for 25 consecutive months as of August” based on estimates by SRX, a portal run by 99 Group.
Meanwhile, the price rises have also impacted public housing with “some government-subsidized flats fetching price tags of more than S$1 million (RM3.25 million)".