Singapore's home price growth slowed for the first time in five quarters, a sign that the market frenzy may be easing.
Private property values increased 0.9 per cent in the three months through June from the previous quarter, when they rose 3.3 per cent, preliminary estimates from the Urban Redevelopment Authority said on Thursday.
Singapore's property market has been heating up in the past year as buyers capitalize on low interest rates and expectations that prices will climb further after the economy recovers from the pandemic. Values of public housing apartments and luxury homes have jumped, with some breaking records.
Soaring prices in the city-state have been in line with a worldwide boom that's seen home values climb the most since before the global financial crisis, triggering concerns of a bubble.
While there has been intense speculation that Singapore authorities may impose cooling measures for the first time since 2018, the central bank said this week that the market isn't overheated. However, it remains "highly vigilant" about the rising prices given the risks that may arise if they're left unchecked.
"A prolonged divergence between prices and incomes is unsustainable from a market stability perspective and undesirable from a housing affordability perspective," Ravi Menon, managing director of the Monetary Authority of Singapore, told reporters on Wednesday. - Bloomberg