The Government gave a firm reminder that it is keeping a close watch on the property market as flash estimates from the Urban Redevelopment Authority showed private home prices rose 2.1% for the fourth quarter – the steepest quarterly increase since the second quarter of 2018 when they jumped 3.4% before property cooling measures hit in July that year.
This performance came amid the COVID-19 pandemic and Singapore’s economy appearing to be on track for a 6% decline and unemployment rate hitting 3.6% in the third quarter compared with 2.3% a year ago. To counter the ample liquidity and low interest rates, DBS analysts suggested that the Government could further “tweak additional buyer stamp duties for investors and foreigners as it has been shown to slow the pace of price increases”, tighten mortgage terms and adjust upwards the average minimum home size for new developments.
