SINGAPORE — Property prices in Singapore have climbed in the past two years, and will likely keep going up despite the government’s efforts to cool the market, analysts and real estate agents told CNBC.

Leonard Tay from Knight Frank Singapore, Head of Research, says private home prices will rise anywhere between 1% and 3% by 2022.

JLL Singapore believes that the prices of JLL Singapore will increase around 2% to 4.4% in 2018, according to Ong Tuk Hui, Senior Director of Research and Consultancy.

This is still much lower than the price rises last year. private home prices jumped by 10.6% in 2021Comparable to one year ago.

The resale prices for public housing apartments are also available. popped 12.7% last yearAccording to data provided by the Housing and Development Board,

To cool down the hot private and public residential real estate market Singapore introduced new measures in mid-December. You included higher taxes on second and subsequent property purchases and tighter limits on loans.

Agents and analysts believe that the measures will have less effect on Singaporeans and permanent residents buying homes to live in.

However, foreign buyers appear to be dissuaded by these new rules.

Trisni Dajohari is a PropNex agent who mainly serves clients from Indonesia. She said that in the past she would receive between 10 and 12 inquiries per month.

She said that she had only one inquiry since mid-December, when the cooling measures were first announced. This was before she spoke with CNBC in February.

They all agree that they need to think again. [before they]She said, “Buy property in Singapore.”

An additional buyer’s stamp tax for foreigners has been increased to 30%, from 20% previously. ABSD is a taxThis tax is charged to buyers of Singapore residences. This is based on one’s citizenship, residency status and number of Singapore residential properties that the individual owns.

ABSD is also required for property developers to purchase residential property. The new rules have raised the threshold to 35%.

JLL’s Ong reported that transactions on the private residential sector fell 20% by December 2nd after the cooling measures had been implemented, as compared to the previous half.

According to market watchers, the cooling effect should last for around 2 to 3 quarters of a year.

Tay of Knight Frank stated in an email that “Volumes, prices will show some tentativeness in Q1 2022 and possibly Q2 2022” before the underlying fundamentals start to kick in to reestablish homebuying desire.

The demand was so high that prices rose multiple times per day in one property launch. According to a local media reportSix rounds of price rises were conducted, units being sold for between $1,400 Singapore dollar per square foot and S$2,000. This is a difference of $1,042 and $1,490 per sq foot.

Chantel Neo from Huttons said that Pasir Ris 8 is the most iconic. She was referring to the condominium on the eastern side. Prices rose during its launch.

It was “quite shocking to the market,” she said. She said that potential buyers didn’t bid because of the increased prices.

Tay predicts that owner-occupiers will be the largest group of buyers in this year’s market.

Zarifah Zain (another property agent with ERA Realty Network) said that she does not see these buyers being affected.

Zain stated, “For first-time, genuine homebuyers. Their needs are being prioritized. I don’t see an effect for them.”

Tay indicated that even with higher taxes, some foreigners could still be interested to purchase luxury homes in central Singapore.

In 2021, prices in this segment did not rise as significantly. according to government data.

Tay explained that despite the high level of interest in Singapore from foreign potential homebuyers, some may be still willing to fork out the 30% ABSD for entry into this prime residential market.