Shortage or resale flats driving up prices in singapore

A shortage of apartments and strong demand from buyers is accelerating price growth in Singapore with some analysts calling for property cooling measures to be reviewed.

Resale flat prices, which are already at an all time high, increased 3.8% in the third quarter this year, higher than the 3.1% recorded in the second quarter.

Since property cooling measures were introduced last year to take the heat off the market, the number of transactions have dropped significantly. Property firms said the number of deals closed have dipped by 30% compared to a year ago.

Market watchers said there has been a slow down in the supply of flats, as home owners are put off by the rule that requires them to sell off their flat first before they are granted a higher bank loan of 80%.

Source: Property Wire