(Bloomberg) -- Singapore home prices rose for a second straight quarter, reinforcing signs the city-state's property market is emerging from a four-year slump.
An index tracking private residential prices rose 0.7 percent in the three months ended Dec. 31, building on a 0.7 percent gain the previous quarter, according to preliminary data from the Urban Redevelopment Authority released Tuesday. For 2017, prices rose 1 percent compared to a 3.1 percent decline in 2016, the data showed.
A jump in home sales and developers' aggressive bids for land are stoking optimism the property market is making a comeback after prices fell for almost four years. Still, gains may be capped as the bulk of cooling measures rolled out since 2009 remain in place to avoid Hong Kong-style runaway price-growth.
The central bank in November flagged the risk that rising housing vacancies amid slowing population growth may undermine the burgeoning property recovery.
Developers sold about 10,245 units last year through November, already making it the best year since 2013, with a month of sales still to report.
Apartment prices in prime districts rose 1.6 percent last quarter compared to a 0.1 percent gain in the September quarter. Suburban apartment prices added 0.6 percent after climbing 0.8 percent in the previous quarter, while areas near prime districts gained 0.2 percent. For 2017, prime area apartments rose 0.8 percent while suburban areas added 1.2 percent.
To contact the reporter on this story: Pooja Thakur in Singapore at pthakur@bloomberg.net.
To contact the editors responsible for this story: Sree Vidya Bhaktavatsalam at sbhaktavatsa@bloomberg.net, Peter Vercoe, Paul Panckhurst
©2018 Bloomberg L.P.
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