Singapore: Singapore real estate prices rose for a third consecutive quarter in the January-March period despite government efforts to cool the hot property market.
Private residential property prices rose 5.1 per cent in the first quarter after jumping 7.4 per cent in the fourth and 15.8 per cent in the third, the Urban Redevelopment Authority said yesterday.
Prices have bounced back strongly after diving 25 per cent in the 12 months to mid-2009 as the city-state's economy rebounds from last year's recession.
Singapore's leaders voiced concern last quarter that home values may be soaring too far, too fast, and implemented a series of measures to discourage short-term speculative investing in property.
The government in February imposed a 1 per cent to 3 per cent tax on residential properties sold within one year of purchase and lowered the loan-to-value limit to 80 per cent from 90 per cent on loans for private housing.
Officials have also pledged to release more government land this year for real estate development to help boost housing supply. Policy-makers throughout Asia have grappled with balancing low interest rates to spur economic growth and the danger that cheap credit can fuel asset bubbles.
Shanghai's luxury property prices jumped 52 per cent last year, Beijing soared 47 per cent, and Hong Kong gained 41 per cent, according to London-based property consultancy Knight Frank.
Singapore's low inflation rate - it was zero per cent last year - has helped banks keep loans attractive.
