Private property prices in Singapore have moderated but remain at an elevated level, according to Monetary Authority of Singapore (MAS)’s Financial Stability Review 2014.
Prices have declined for four consecutive quarters, by 3.9 percent since Q4 2013. However, prices remained high, seeing an increase by 62 percent from Q2 2009 to Q3 2013.
Although the price decline applied to homes across the country, the momentum varied across different market segments.
Prices in the Core Central Region (CCR), for example, started to fall earlier than other areas, declining by 5.7 percent from the peak in Q1 2013 to Q3 2014.
Prices of mass market homes in the Outside Central Region (OCR) declined two quarters later in Q4 2013, with a smaller decline of 2.3 percent since then.
Overall transaction activity also fell as buyers become cautious. According to the report, some buyers may be holding back their purchases as they are expecting prices to fall further.
MAS added the government’s property measures have contributed to restoring financial prudence, but the likelihood of higher interest rates remains a risk for some highly-leveraged households. “MAS will continue to monitor the property market and take appropriate measures to maintain a stable and sustainable market,” the report said.
Photo by Muneerah Bee