Singapore’s private home prices have climbed, second-quarter data show, spurring real estate services provider Colliers International to raise its price growth forecasts.
The private residential property index climbed 3.4 percent on-quarter in the second quarter, according to the flash estimate from the Urban Redevelopment Authority (URA) on Monday, slowing slightly from the first-quarter’s 3.9 percent on-quarter increase.
“This marked four straight quarters of rising streak, reflecting a sustained trend of price growth that is supported by the rosier economic outlook, relatively healthy housing demand, and rising market confidence,” Tricia Song, head of research for Singapore at Colliers, said in a note on Monday.
She added that brought private residential prices to a cumulative 7.4 percent rise in the first six months of the year, bringing them to just 3.6 percent below their peak in the third quarter of 2013. Non-landed private residential prices are only 1.7 percent below the 2013 peak, while landed home prices are still 9.6 percent below that level, she noted.
“With the two strong quarters of price increase, we are now raising our private home price forecast for the full 2018 to 12 percent from 8 percent. This means the second half of 2018 could see a further 4-5 percent rise from here,” she said.
But she added, “We believe competition from launches, prevailing loan curbs and price sensitivity among prospective buyers should continue to keep price increases in check.”