Singapore Home Prices Rise as Virus Curbs Test Market Resilience

(Bloomberg) -- Singapore home prices rose slightly in the third quarter as the latest round of virus restrictions tests the market’s resilience.

Private property values climbed 0.9% from the previous quarter, according to Urban Redevelopment Authority flash estimates released on Friday. That’s higher than the 0.8% growth in the second quarter but lower than the 3.3% increase in the preceding period.

The residential property market has been one of the Singapore economy’s few bright spots during the pandemic. Like many other countries, the city-state has seen strong demand for homes during the health crisis, with buying from ultra-rich foreigners fueling the frenzy.

Singapore is trying to live with the virus, but a recent surge in infections prompted the government to pause reopening plans. It imposed tighter curbs this week which include capping social gatherings and dining in to two people, continuing a stop-start trend that has been ongoing since May. 

The restrictions have deterred new launches of residential projects and steered buyers away from viewings. Still, the housing market has remained solid during the disruptions, with purchases of new private homes in August hovering above 1,000.

©2021 Bloomberg L.P.