SINGAPORE: The latest data from the Urban Redevelopment Authority revealed that home prices in Singapore saw a modest increase of 1.4% from the previous three months, compared to a preliminary estimate of 1.5%. This marks a slowdown from the previous quarter’s 2.8% surge in 2023.
Meanwhile, private rents dropped by 1.9%, following a 2.1% drop in the preceding quarter, which was the first decline in over three years.
Yahoo Finance reports that despite the consecutive quarterly increases in home prices, factors like high-interest rates and government measures aimed at cooling the market have put pressure on demand, especially among foreign buyers eyeing luxury properties.
This has led some analysts to suggest that the property price rally might be coming to an end.
Morgan Stanley, for instance, anticipates a 3% decrease in private home valuations in 2024, while Bloomberg Intelligence foresees prices remaining flat with a possibility of a decline.
In an attempt to address concerns over housing affordability, the authorities have been quick to highlight the slowdown in price growth ahead of the general election slated for no later than 2025.
The weakening sentiment in the property market is evident from recent sales figures. Last weekend, a private residential project managed to sell only three out of 59 units put on the market.
Additionally, prices of high-end condominiums are being slashed. Notably, a firm associated with major developer City Developments Ltd. managed to offload 65 luxury units in Sentosa after implementing price cuts of over 40%. /TISG
Read also: Private home prices up 1.5% in Q1, while transaction volume declines 20%