Despite all the talk of cooling measures by the Singapore government, private home prices have never went down. Prices may have risen more slowly since the cooling measures but it is still rising.
Despite all the talk by government analysts saying there will be a 30% drop in property prices this year, this has not happened because rich foreigners are still buying Singapore homes. They do this no matter the price because they do not believe the Singapore government is serious about making home prices in Singapore more affordable. Why should they bother about the price when they do not believe the Singapore government will allow the price of homes to drop substantially?
To be fair to them, most Singaporeans don’t think the Singapore government is serious about making home prices in Singapore more affordable. It had been pretty obvious for months that all the cooling measures has not work because private home prices never went down (a drop of 0.01%? Don’t make me laugh) but we have government agencies like the Ministry of National Development (MND) insisting that the cooling measures “are working”.
That’s why people (Singaporeans and foreigners) keep on buying homes in Singapore. As long as the Singapore government refused to admit their cooling measures are NOT working, as long as the prices do not come down (HDB house at $900,000), as long as people don’t think the Singapore government is serious about making home prices in Singapore more affordable; home sales and housing prices will continue their upward trend.
To me, not only is the rise in private home sales not a surprise; it should be expected!