Singapore Home Prices Rise as Market Defies Worst Recession

(Bloomberg) -- Singapore home prices rose in the third quarter from the previous period as government stimulus held up demand, providing a bright spot for the country’s economy suffering its worst recession.

Property values increased 0.8% in the three months that ended Sept. 30, the Urban Redevelopment Authority said on Friday.

The gain marks the second consecutive quarter of growth, prompting analysts to revise forecasts. They now predict prices may rise as much as 1.5% this year, after previously estimating declines of as much as 6%.

The figures, which come on the back of home sales rising to its highest in more than two years, show that the property market is weathering the city’s worst recession after a two-month lockdown. Low interest rates and more than S$100 billion ($74 billion) of stimulus have enabled the market to stay resilient.

Measures to allow buyers to defer loan repayments also helped prop up the market. These factors prevented homeowners and developers from slashing prices too drastically.

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