According to a report by Bloomberg, Singapore’s home prices maybe set to make a comeback after a three-year losing streak.
Amid a restructuring push to boost a slowing economy, the government could signal its intention to reconsider property cooling measures as early as the budget speech in February. Home prices in Singapore have been driven by the city-state’s policies in recent years as the government vowed to rein in soaring values in one of Asia’s most expensive housing markets. Fourth-quarter private home prices fell 0.5 percent versus the last quarter, when housing values dropped by the most in seven years, according to data released by the Urban Redevelopment Authority on Thursday.
Prices have declined by about 11 percent since 2013 and sales have dropped to around half of that year’s level.
Singapore’s housing market saw a surge in home sales in 2016 as developers sold more than 8,000 units, a 9 percent increase compared with the previous year. Over 13,000 private residential units are expected to be completed this year, data from the Urban Redevelopment Authority showed. The pipeline supply will then drop to about 9,300 completed units in 2018 and 7,300 in 2019.
On a separate note, Hong Kong’s recent housing curbs may also boost Singapore’s home prices.