Singapore is trying to cool the real estate market, writes Bloomberg .
Singapore has imposed restrictions on residential real estate for the first time since 2018 to reduce the surge in house prices that has been recorded over the past year.
The country's government announced an increase in additional stamp duties for second home buyers and for foreigners buying real estate for themselves. Also, the limits on loans for apartments in the public housing stock are being tightened. The country's leadership will also increase the supply of public and private housing.
Low interest rates and the expectation of further price increases as the Singapore economy recovers led to higher property prices.
Private home prices have risen by about 9% since the first quarter of last year. The secondary public housing market is also recovering sharply from a six-year recession, increasing by about 15% over that period. In the first half of 2021, sales were S $ 32.9 billion (US $ 24 billion), double the Manhattan record, driven by demand from the super-rich flocking to Singapore.
