Increases in private home prices in Singapore is expected to ease in the second quarter this year, after a 5.6-percent jump in the first quarter.
While prices of suburban homes have already exceeded its peak by ten percent, it could cost two percent to three percent more over the next two quarters, according to Colliers International.
Meanwhile, luxury home prices have been projected to climb by up to 20 percent for the whole year, as its prices have already surpassed the eight percent record level seen in 2008.
With the softening increase in prices, several analysts are not expecting the government to roll out additional measures to cool down the market. But they still believe that high-end home prices will continue to push upwards, fuelled by foreign demand.
Units in Sentosa Cove are among the priciest in the property market but still, many foreign buyers are purchasing them, with a unit being sold to a Chinese buyer for S$36 million.
With several cooling measures implemented in many Asian cities, some observers said that more foreigners will dip into the Singapore property market.
Tay Huey Ying, director (Research & Advisory) of Colliers International, said: "Foreign buyers are certainly on the comeback. For the first five months alone, based on the caveats lodged, the number of foreign purchasers has already exceeded 55 percent of what we saw for the whole of last year."
"With the recovery of the economy gaining traction, we expect to see more of them coming into Singapore, especially given the cooling measures that the governments of Asian cities have put in place for their respective markets."
"We see some of those interests flowing into Singapore, and of course the appreciation of the renminbi will also contribute to the growing foreign buying population in the second half of the year."