Home prices in Singapore have fallen to a record 7-year low
Home prices in Singapore have fallen to a record 7-year low
It’s now 12 consecutive quarters of losses for private home index
Private home prices in Singapore experienced the steepest decline in seven years, data released Monday by the Urban Redevelopment Authority showed.
The country’s private residential property index sank 1.5 percent in the three months to September 30. Unit prices dropped 1.8 percent in prime districts, while those in the suburbs fell 1.2 percent. Prices near prime districts decreased 1.3 percent.
This is the biggest plunge for the index since June 2009, when home values sagged 4.7 percent in the wake of the global financial crisis. With this latest decrease, the index marked its 12th consecutive quarter of falls.
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The plunge is largely attributed to the government’s unbending cooling measures, which have compelled developers to market their offerings at markdowns. These curbs include raised stamp duties for purchases by foreign buyers and a cap on debt coverage ratio set at 60 percent of a mortgagor’s monthly income.
“The prices could be taking into account the delayed discounts offered in creative marketing by developers, which could be coming in with a lag,” Nicholas Mak, an executive director at SLP International Property Consultants in Singapore, told Bloomberg.
The Singapore market may finally be receiving the brunt of an economic slowdown, “on top of the downward pressure from the supply spike in 2016, 2017,” Christine Li, head of research for Cushman and Wakefield in Singapore, told Reuters.
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Source: Property Report