Ravi M.G.K. Menon, director of the Monetary Authority of Singapore, said at the end of last month that the authorities were "highly vigilant" against rising house prices. The move follows a sharp rebound in Singapore's property market from the downturn in the early stages of the epidemic, sparking speculation that the government may take cooling measures for the first time since 2018.
However, due to a new wave of outbreaks, such measures are no longer necessary. Data released by Singapore's Urban Renewal Authority on Friday showed that house price growth in Singapore slowed in the second quarter as epidemic restrictions prevented the launch of new buildings and limited the number of people who could visit apartments.
Data show that private housing prices in Singapore rose 0.8 per cent in the second quarter from the previous quarter, slowing significantly from the 3.3 per cent rise in the first quarter.
This is the first time in five quarters that the rise in house prices in Singapore has slowed. Since May, the government has imposed a similar blockade for a month, including restrictions on visits to new apartments.
After easing restrictions in June, analysts had expected demand to pick up again. But a new round of restrictions imposed this week is likely to further dampen the frenzy.