Based on the preliminary government data, which was released Thursday, there was a 15.9 percent surge in prices of Singapore private homes during Q3 from Q2. It also highlighted concerns regarding the present bubble in the property market.
Last month, the government of Singapore announced that it would release more land as a cooling measures to address the dilemma in the property market. Such measure brought difficulties for home-buyers to defer payments. However, according to analysts, policymakers were possible to delay on further measures with fear to derail a still unstable recovery in the economy.
Analysts noted that prices for Singapore homes started to rise in the second quarter, contrary to a decline of 4.7 percent for that quarter revealed in the index of Urban Redevelopment Authority. A volume of buyers have been grabbing flats at new Singapore residential launches.
"The numbers are backing up the anecdotal evidence we’ve seen – if anything they are understating it," said Singapore 4CAST Economist Vishnu Varathan. "Policymakers will be acutely aware of the risks of tightening too fast…At this point I think they will wait and see."
In not more than one year, Asian investors have gone from fright to optimism and now to apprehension about concerns that would potentially destabilise the asset bubbles that are forming in property and equity markets, even as the economy all throughout the world are still on its healing stage from the crisis they had gone through.
Aside from meddling around the edges by saturating excess liquidity, the monetary authorities in Asia for the time being appear set to do little about it.
With the faster-than-expected recovery in the economy and the preference among investors for property, several analysts consider that the growth in house prices in China Hong Kong and Singapore are not yet at its peak.
Shares in CapitaLand, the largest property firm in Singapore, have more than doubled ever since a low early in March. The firms’ shares have outperformed the wider index of Singapore, which had a gain of 74 percent.