Singapore: Property prices in Singapore decline 3.38% in the second quarter of 2015. This is the seventh consecutive quarters that property prices has fell. Transactions has also decline, falling 24% to 1,999 units for private condos, as reported by URA.
In August 2015, new home sales also decline, down 69.3% to just 495 units as compared to last month which developer sold 1,594 units. Cooling measure as well as the Hungry Ghost festival are probably the reason for this decline which buyers normally stay away from property purchase as they find it “inauspicious” to purchase property during this period.
Going forward, this slowdown in Singapore property prices is expected to continue due to rising interest hikes as well as macroeconomic uncertainties. Singapore key benchmark for mortgage rate rose to a new high. Singapore Interbank Offered Rate (SIBOR) rate also rose to 1.13% which is the highest since 2008.
Cooling measures which most buyers are hoping that it will be remove are unlikely to be fulfilled in 2015, even though PAP came in to a strong victory. The Property Price Index (PPI) has only drop 6-7% since its peak in 2013 3rd qaurter. Revisement of cooling measures likely will happen next year when property prices has fall to a more “reasonable price”.
