Singapore home prices rose to record highs in the fourth quarter but the pace of increase declined, government data showed on Monday, suggesting authorities may hold off introducing new measures to cool the housing market. The Urban Redevelopment Authority's (URA) flash estimate showed private home prices rose 2.7 percent in the last three months of 2010 compared with the preceding period, down from an increase of 2.9 percent in the third quarter.
"The pace of growth has slowed for the fifth consecutive quarter... This should give comfort that the recent government property cooling measures, as well as the ramped-up state land supply, have worked to some extent to contain price growth," said Tay Huey Ing, director of research and advisory at Colliers in Singapore. Tan predicts private home prices in Singapore will rise by around 10 percent this year, down from the 17.6 percent increase in 2010, as low interest rates will continue to drive demand for residential property.
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