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Singapore’s private home prices fell for the first time in five quarters amid depressed sales, preliminary market data showed on Tuesday.
The data released by the Urban Redevelopment Authority showed that its private home price index fell 1.1% last quarter as compared to the previous three months.
The fall reversed gains from the second quarter and represented the index’s first drop since the second quarter of 2023. In total, prices were up only 1.1% in the first three quarters of 2024 compared with a 3.9% gain over the same period the prior year.
Sales transaction volume also fell by about 11% in the third quarter from the previous three months. For the first three quarters of 2024, sales transactions were down 8.1% from a year ago.
“While macroeconomic conditions remain sound, the economic outlook is subject to uncertainties, and market sentiments continue to be sensitive to geopolitical developments and global interest rate changes,” the authority said.
Some buyers may have held off on home purchases in the third quarter in anticipation of the U.S. Federal Reserve’s September interest rate cut.
However, the authority said that despite the Fed’s rate cuts, Singapore’s mortgage rates are expected to remain elevated relative to the low levels experienced over the past ten years.
“Households should continue to exercise prudence when purchasing properties and taking on mortgage loans,” it added.
The Urban Redevelopment Authority’s estimates were based on contract prices and data on units sold by real estate developers up until mid-September. The authority will release a more complete set of property statistics for the third quarter on Oct. 25.
Meanwhile, resale prices of Housing and Development Board flats in Singapore were up 2.5% in the third quarter compared to the previous one, according to HDB flash estimates also released Tuesday. HDB resale volumes were up 20% quarter-on-quarter.
In Singapore, more than 80% of residents live in public housing flats, which are built, sold and subsidized by the government. Local authorities recently introduced measures to cool the public housing market.
“The government will continue to monitor the property market closely and adjust its policies as necessary to promote a stable and sustainable property market,” HDB said.