#singapore real estate
Singapore house prices continue to fall
Singapore housing prices are trending down, with economic growth moderate. The private residential property index fell by 3.83% during the year to Q1 2015. When adjusted for inflation, house prices fell by 3.45% during this period.
During the latest quarter (i.e. q-o-q in Q1 2015), residential prices fell by 1.02% (-0.89%% inflation-adjusted).
- In Core Central Region. prices of non-landed private residential properties fell by 3.52% (-3.14% inflation-adjusted) y-o-y to Q1 2015.
- In the Rest of Central Region. property prices were down by 3.74% (-3.35%% inflation-adjusted) over the same period.
- Outside Central Region. property prices fell by 3.13%(-2.75% inflation-adjusted) during the year to Q1 2015
The slowdown in house prices is the result of deliberate government policy. Before and after the global economic crisis, Singapore’s property market surged, and Singapore experienced an amazingly overheated market. The residential property price index rose 38.2% during the space of only one year to Q2 2010 (34% in real terms).
The Singapore government sensibly began to take steps, and when these turned out to be not enough, took further measures.
These market-cooling measures have been effective, as evidenced by the 6% decline in property prices since the peak in 2013. In Core Central Region, prices have however declined at a slower pace over the past four quarters. It seems that some sort of stability is being achieved.
Barring any changes in the Total Debt Servicing Ratio framework, property agent Savills believes that “Core Central” prices have reached a level that could entice buyers back. However prices have yet to fall far enough in “Rest of Central Region” and “Outside Central Region”, Savills believe.