Despite the impact of economic conditions and government cooling measures, Singapore’s property market recorded the hottest pace of year-on-year price growth in the second half of 2023. This work sheds light on the forces at work in a city that is increasingly famous as a wealth management hub.
Singapore recorded the fastest annual house price growth among 25 Asia-Pacific markets in the second half of 2023, boosted by a growing affluence and signs of a peak in international interest rates, Knight Frank said.
The real estate consultancy firm has released the Asia-Pacific Housing Valuation Index for the second half of 2023, announcing that 21 out of 25 cities recorded positive annual price growth in the second half of 2023. Singapore’s numbers jumped 13.7% year-on-year. Prices rose 4.5% across all markets.
“The housing market has soared over the past six months following the Federal Reserve’s decision to pause interest rate hikes, prompting potential buyers who were on the sidelines to make purchasing decisions,” said Kevin Koppel, managing director at Knight Frank Asia Pacific. ” he said. , Said. “Ongoing supply-side constraints such as input costs, labor shortages and construction delays are playing a role in supporting prices in many Asia-Pacific cities.”
Knight Frank said Singapore remains a “safe haven” despite the global macroeconomic environment becoming more challenging following the city-state’s measures to curb property prices in April last year. He said there was.
The jurisdiction has continued to rise in recent years as a center for family offices and wealth management, in part benefiting from Hong Kong’s tough pandemic measures and political upheaval. There are also downsides. That said, Singapore’s real estate market is hot, making it difficult for many people trying to make a living in the island nation. The price of state-owned housing, which is owned by about 90% of Singaporeans, rose by 10% in 2022, on top of double-digit price increases in the previous year. Singapore has doubled stamp duty for foreigners to 60% to curb upward pressure on prices. Mr Savills said the jurisdiction had the highest such levy in the world.