Singapore housing prices fell for the first time in five quarters, as purchase restrictions and high interest rates cooled the property market
Singapore's property prices have fallen for the first time in five quarters, with the private residential price index dropping by 1.1% on a quarter-on-quarter basis. Due to purchase restrictions and high interest rates, the property market transactions have slowed down, and it is expected that new home sales this year will hit the lowest level since the global financial crisis. Morgan Stanley predicts that property prices will fall by another 1% in the fourth quarter, and by 5% next year
Singapore's property prices have fallen for the first time in five quarters, with the real estate market slowing down. According to preliminary data released by the Urban Redevelopment Authority of Singapore on Tuesday, the private residential price index fell by 1.1% quarter-on-quarter last quarter, marking the first decline since the second quarter of 2023. In comparison, the index rose by 0.9% in the second quarter.
Singapore's new home sales are expected to see the worst performance since the global financial crisis this year, as purchase restrictions and high interest rates dampen housing demand.
The Urban Redevelopment Authority of Singapore stated that despite the Federal Reserve's rate cut in September, domestic mortgage rates are expected to remain relatively high. The agency estimates that residential transactions, including resale homes, in the third quarter are expected to decrease by about 11%.
Morgan Stanley predicts that Singapore's private residential prices will fall by another 1% in the fourth quarter of this year and by 5% next year. Analysts Wilson Ng and Derek Chang noted in their report on Tuesday that last quarter's price decline was mainly driven by a drop in landed residential and city center prices. They had previously stated that "the conditions for a price decline are in place."
