Singapore saw private home prices drop 3.2 percent year-on-year in Q2 2015, and the overall loss for 2015 may reach four percent, revealed research by Knight Frank.
Notably, Singapore registered the second biggest drop in property prices among the major Southeast Asian market during the said period, reported Select Property.
“Singapore’s continual fall in non-landed private home prices demonstrates persistent weakness of the market, with prospective buyers remaining cautious against the backdrop of existing cooling measures, and in anticipation of further price correction,” said Alice Tan, Knight Frank Singapore’s Director and Head of Consultancy and Research.
As 2015 draws to a close, the private home market may face further decline in both rental performance and capital values, she said. While the city-state is not directly affected by Black Monday from which Chinese shares suffer, the market faces a rising supply of new homes, domestic economic slowdown, and an impending increase in interest rates.
Prices of private residential properties fell 0.9 percent in the second quarter of 2015 after declining 1.0 percent in the previous quarter, revealed flash estimates of the Urban Redevelopment Authority’s (URA) price index.
This is the seventh continuous quarter of price decrease.
Prices of non-landed private units declined in all market segments, noted URA.
In the Core Central Region (CCR), prices slid 0.5 percent, higher than the 0.4 percent decline in the quarter before. Prices in the Rest of Central Region (RCR) dipped 0.5 percent, compared to the 1.7 percent decrease in the previous three-month period. In the Outside Central Region (OCR), prices fell 1.2 percent, more than the 1.1 percent drop in Q1.
The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and survey data on new units sold by developers during the first ten weeks of the quarter.
URA will release the full statistics for Q2 which captures more data from the stamp duty records and the take-up of new projects in four weeks time.