SINGAPORE (Sept 27): Singapore home prices have reached a bottom and will rebound, while Hong Kong’s “crazy” housing market will continue to defy gravity, according to BNP Paribas SA.

“Very significant” income growth will drive the first leg of a recovery in home prices in Singapore, where property ownership as a proportion of household assets is near a record low, BNP’s Asia-Pacific head of research for financial institutions and property Wee Liat Lee said in an interview while visiting the city-state. That will boost prices by 10% to 15% over the next 12 to 15 months, in turn luring foreign buyers, especially from China, Lee said.

Singapore property prices have declined for 15 quarters -- the longest slide since data was first published in 1975 -- as the government rolled out a series of curbs. Home values have dropped 12% from their 2013 peak, while Hong Kong prices reached record highs earlier this year.

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