Singapore Home Prices Rise Despite Recession

Singapore home prices rose last quarter as low interest rates and huge government stimulus helped the property market weather the city-state’s worst recession. Property values increased 0.8% in the three months ended Sept. 30, according to the Urban Redevelopment Authority’s preliminary estimate. The stronger-than-expected result prompted analysts to revise forecasts, saying prices may rise as much as 1.5% this year, having previously estimated declines of as much as 6%. The figures, which come on the back of an 11-month high in home sales, signal the property market is recovering after a two-month lockdown to combat the coronavirus. To cushion the economic fallout, the government unleashed more than S$100 billion ($73.3 billion) of stimulus. It has since relaxed virus curbs and lifted travel restrictions for tourists from Australia and Vietnam. The gains were largely driven by rising values of properties located in the suburbs and those just outside the prime district, which both saw robust demand after the lockdown was lifted in June. Measures to allow home buyers to defer loan repayments and waiving charges for developers applying to extend completion deadlines also helped prop up the market. These factors prevented homeowners and developers from slashing prices too drastically to spur sales.