Singapore, 19 Aug 2022 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.
Christine Sun, senior vice-president of research and analytics at property agency OrangeTee & Tie, says the proliferation of 1- and 2-bedroom units in the past few years has helped investors own more properties.
“We don’t have the stats to prove (this), but if you turn left and right, you will find that a lot of people are holding multiple properties,” she says. “Because the price quantum is more affordable, it makes it easier for people to own a second or a third property.”