Supply restrictions are pushing up property prices and rents in Singapore, a real estate company chief executive said Friday.
“You can see a huge gap between supply and demand,” said Hari Krishnan of PropertyGuru.
Singapore introduced measures to cool the property market in December 2021, but analysts told CNBC in February they expected prices to continue rising, but at a slower pace.
Private residential property prices rose 0.7% in the first three months of 2022, compared to a 5% increase in the last quarter of 2021, according to the City Development Authority.
The social housing resale price index rose 2.4% in the first quarter of the year, compared with a 3.4% increase recorded in the last three months of 2021, according to the Housing and Development Board.
PropertyGuru’s Krishnan said that Singapore’s construction sector was largely shut down for about two years due to labor shortages, although the industry has begun to recover in 2021. Supply chain bottlenecks have also affected building materials, he said.
Demand has been heartbreaking and supply is limited, said Hari Krishnan, CEO of PropertyGuru.
Lauryn Ishak | Bloomberg | Getty Images