In news from Singapore, property prices there have continued to edge toward new highs. In the first quarter of 2011 residential property prices rose by as much as 2.1 percent even despite government measures to curtail prices.
The Urban Redevelopment Authority also reported prices climbing for seven straight quarters with an 18 percent increase last year. The Housing Development Board there added that even public housing, where most Singaporeans actually live, rose by 1.6 percent in Q1. Singapore, much like Hong Kong and China, has attempted to slow the property market, but to little effect. While the Q1 increases appear to indicate some slowing, prices are still near all time record highs.
A report earlier this week from Jones Lang LaSalle suggests spillover from China has caused the rally in Singapore prices. At the beginning of the year the government of Singapore introduced new anti-speculation measures like tougher borrowing limits to try and curb this rather mercuric rise in prices. The cost of buying and owning a home in Singapore has now become a huge political football as well.
Private home prices these last few quarters have gone from a price jump of 5.6 % in Q1 of 2010 to a 5.3 % gain in Q2, and onward to Q1 2011 of 2.1 %. There has been a steady decline in the rate increase, but the growth is still astounding. The Reserve Residences Far East will set the new pricing in Upper Bukit Timah after The Verdale has just completed sold out in May 2022. The good news for Singapore citizens is, many there may still be able to afford homes if the predicted salary increases across the country come true. Some employers say pay raises of up to 8 percent are in the offing.