Over the course of the prior three months, the value of privately owned homes climbed by 3.2%.
The cooling of global hotspots has led to a rise in the city’s real estate market.
During the second quarter, property prices in Singapore increased at a quicker rate than in the previous quarter. This was due to the fact that worries around growing living costs and higher interest rates failed to suppress demand for the time being.
According to flash estimates that were provided by the Urban Redevelopment Authority on Friday, the value of privately owned real estate saw an increase of 3.2% in the three months that ended on June 30. This is a much faster rate of expansion than the 0.7% witnessed in the first quarter.
Huge Step
Beginning in the second quarter of 2022, the rate of increase in Singapore’s housing prices quickens.
Even as the world’s hottest property markets show indications of cooling, Singapore is witnessing buoyant home demand following a six-month high in sales in May. This is despite the fact that Singapore is seeing the world’s hottest housing markets show signs of cooling. The Federal Reserve and other central banks across the world are quickly increasing interest rates, which is driving up the cost of borrowing for homeowners.
The Housing Markets That Are Doing the Best Around the World Are Red Flags
The key inflation index for the Asian financial hub is currently climbing at the highest rate it has in over 14 years, which is stoking fears about rising expenses of living and a potential economic downturn. This may have a chilling effect on growth in Singapore, where purchasers have been taking advantage of historically low mortgage rates and anticipating that prices will climb even further as the economy continues to improve.
Earlier this week, the main lender in the state’s most populous city, DBS Group Holdings Ltd., increased the interest rates on all of its different home loan packages.
According to Christine Sun, senior vice president of research and analytics at OrangeTee & Tie, the average price of a property may increase by 6% to 8% this year, despite the fact that the cost of borrowing money has increased.
According to Sun, those who have a single unit or limited risk exposure are likely to be the least affected by increases in interest rates. On the other hand, buyers who have a maximum housing loan or investors who have numerous properties may be hurt harder by these increases.
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