RHB anticipates residential property prices in Singapore to rise between 5% and 7% this year, adjusting its previous estimate of 0% to 3% growth, according to Singapore Business Review (SBR).
The adjustment is based on RHB’s assessment of a robust job market with falling unemployment and a lower likelihood of the government introducing cooling measures.
Despite the fact that it anticipates house prices to rise, RHB has kept its new sale volume estimate for this year at 9,000 to 10,500 units.
Following a recurrence of COVID-19 cases, the city-state was put on Phase 2 (Heightened Alert) from May 16 to June 13, 2021. As a consequence, the capacity of display flats has decreased significantly. Buyers were only permitted into resale apartment viewings in groups of two.
The move, according to RHB, “helped to calm down some of the frenzy” in the housing market.
“In our opinion, the tighter restrictions have reduced the near-term likelihood of further severe cooling measures, as the government is expected to take a cautious stance amidst present uncertain market conditions,” it stated, as reported by SBR.
