Real estate prices fall all over the world, except in Singapore.
Prices in the Asian city-state have risen 14% year-on-year, according to third-quarter data from Knight Frank.
This is in contrast to major cities such as Hong Kong and Sydney, whose prices fell by 7% and 4% respectively during the same period.
After years of dizzying growth, real estate in the big financial centers is suffering from rising interest rates and fears of a recession.
House prices in Hong Kong, the world's most expensive property market, could plunge as much as 30% by the end of 2023 compared to 2021 levels, according to Goldman Sachs.
Singapore faces the opposite problem.
In 2021, almost 90% of the population owned a home, thanks to the Government's public housing policies.
As real annual wages grow by nearly 20% since 2017 and total employment is expanding, many families aspire to improve their private residence.
However, due to the disruptions brought about by Covid-19, the net new home rate has fallen below the average of the last 10 years.
This decline in construction should ease, but demand will remain strong: skilled foreigners are steadily returning and the city's non-resident population is nearing 1.68 million before the pandemic.
In addition, many wealthy Chinese are increasingly looking for safe havens to store their assets,
In the first eight months of 2022, around a fifth of the 425 luxury apartments sold in Singapore were purchased by buyers from China.
As the Asian giant reopens, there could be even more capital outflows.
This will help protect the city-state from a sudden and painful correction.
Real GDP growth is expected to slow to 2.3% in 2023, from 3% a year earlier, according to the IMF.
Still, Leonard Tay, an analyst at Knight Frank, predicts that residential house prices could rise as much as 5% by 2023. Singapore's property boom is robust enough to weather the turbulent year ahead.
FOR MORE INFORMATION: BREAKINGVIEWS.REUTERS.COM
The authors are Reuters Breakingviews columnists.
Opinions are yours.
The translation is the responsibility of EL PAÍS
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