Singapore Residential Price Index up in Jan

Non-landed private home prices galloped in January, despite the stringent measures announced by the Government to cool the exuberance in the property market.

Flash estimates released by the National University of Singapore Institute of Real Estate Studies showed that the overall Singapore Residential Price Index rose 2.6 per cent month-on-month. That is more than double the 1-per-cent increase in the index in December.

The central region sub-index, comprising postal districts 1 to 4 and 9 to 11, jumped 2.7 per cent to 165.3 points – a reversal from a 0.8-per-cent decline in December. Meanwhile, the non-central sub-index, composed of all remaining districts, rose 2.5 per cent to 158.8 points – slightly higher than the 2.3-per-cent increase in December.

Analysts said low interest rates and strong economic growth are pushing home prices up. Some analysts said it is too early for the numbers to reflect the full impact of the cooling measures, others say it is alarming that prices are still rising so quickly.

And they said that if transaction volumes and prices continue to rise, another round of cooling measures cannot be ruled out.

“If the price increase continues at this pace, certainly I think the authorities will have to look at it,” said Mr Colin Tan, head of research and consultancy at Chesterton Suntec International.

Source : Today – 1 Mar 2011

Join The Discussion

Compare listings