Low-interest rates and increasing household income increase home prices
In 2018, private dwelling prices climbed 8 percent. On the other hand, the market has been lacklustre since then and this is also reflected in the decreased expansion of their property markets.
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Last July’s house cooling measures had curbed the growth of house prices. The rapid pace at which house prices were climbing in the earlier half of last year may have prompted the authorities to roll out the heating measures mid-2018.
Will authorities issue new property curbs if prices continue to grow?
Without a doubtthe government is tracking the local property market carefully so as to avoid a bubble from forming. How likely are the authorities to employ a fresh form of cooling measures ought to land prices here are still grow? A fast and large increase in the supply of new private houses is also expected to happen next year, and as interest rates are not expected to grow further, will this balance market development?
As unemployment rates remain low in Singapore and family incomes continue to grow, coupled with all the suppressed interest rates, buyers’ affordability may increase. It’s yet to be seen how private residential prices may react to this influx of new components to the market next year.
Population growth has nevertheless remained restricted and also the rental markets and potential returns of components purchased for investment purposes may observe customers reconsidering their purchases.