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.
