Singapore Home Prices Rise to Highest in More Than Two Years

rose to the highest in more than two years last quarter as the city-state forecasts a recovery from its worst recession since independence as Covid vaccinations are rolled out and restrictions eased.

Property values increased 2.1% in the three months ended Dec. 31, according to a preliminary estimate by the Urban Redevelopment Authority released Monday. That’s the biggest increase since the first quarter of 2018, when prices surged 3.9%.

The gain marks the third consecutive quarter of growth, defying concerns home prices would decline amid lockdowns and border closures in the tourism and trade-dependent island. Instead, Singapore joins countries from Australia and New Zealand to the U.K. and the U.S. where property markets have surged during the pandemic, as record low interest rates fuel demand.

Read more: Global House Price Boom, Fueled by Stimulus, Faces 2021 Risks

Real estate values could rise further this year, as the government expects the economy to expand by 4% to 6%, rebounding from last year’s 5.8% contraction. The Southeast Asian nation has eased social distancing measures and started its vaccination program with health-care workers getting the first shots.

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