Singapore private home prices fall 2.4%

Singapore private home prices fell 2.4% in the third quarter, worse than an initial estimate of a 1.8% drop as the property market weakened sharply at the end of September.

Rents during the July-September period fell 0.9% after gaining 2.5% in the three months to June, the government’s Urban Redevelopment Authority (URA) said yesterday. Homes in prime areas registered the biggest price decline of 2.7%.

“We know the property markets turned so the revised figures were not a huge surprise. It’s more than likely the fourth quarter will see a sharper decline,” said Song Seng Wun, Singapore-based economist at CIMB.

The fall in Singapore home prices in the three months to September marked the first decline in four years and coincides with the economy’s descent into recession during the quarter.

Demand for government built HDB apartments remained firm during the third quarter as prices gained 4.2%, a separate index from the Housing Development Board showed.

The increase was, however, slower than the second quarter’s 4.5% gain. - Reuters

No comments