Property market records three-year high
The current surge is expected to slow down as Government aid tapers off.
Singapore's property prices have increased in the last four quarters since Q2 of 2020. This is following the months after the Circuit Breaker ended.
According to PropertyGuru's Singapore Property Price Index (SPPI), a QoQ gain of +3.84% was recorded, a figure considered as the highest in three years since Q2 of 2018.
The Singapore Property Supply Index (SPSI) saw a dip with a small decline compared to that of last quarter by 14% from 135.1 to 116.1 points, as buyers were reported to continue to snap up properties.
Properties in the $1m to $1.5m price range continue to make up most of the transactions in Q1 of 2021, whilst there has been a slight dip in properties priced under $1m. The latter signals a slowdown in investments in shoebox units.
Meanwhile, an increase in properties in the range of $1.5m to $2m is seen to reflect the emerging preference among owner-occupiers to have more spacious homes.
The property market is seen to have more than recovered from the height of the pandemic. Sales figures improved as the market regained confidence.
As border restrictions continue to be set in place, the market is largely driven by Singaporean buyers.
The Singapore property market is expected to begin slowing down in H2 of 2021 even without intervention as Government aid tapers off. Should it not, it was reported that the Government is prepared to step in with tighter curbs to cool it down.