Higher interest rates aren’t deterring property buyers, but a lower borrowing cap could
Market watchers say if interest rates hit 4% or more, it could be a tipping point for property demand
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PRICE is a function of supply and demand. Economic theory dictates that higher prices should negatively affect demand, which in turn boosts supply. For months however, Singapore's red-hot property market has been defying such expectations.
Data from the Urban Redevelopment Authority (URA) shows prices of private residential properties rose 3.5 per cent in the second quarter of 2022, building on 0.7 per cent gains in Q1 and 10.6 per cent for all of 2021.
HDB resale prices notched their 25th straight month of gains in July this year, SRX data showed. Overall prices were some 11.6 per cent higher on-year, with the most expensive HDB resale transaction on record – a S$1.4 million 5-room loft unit transacted at SkyTerrace@Dawson – also occurring during the month.
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