Singapore home prices ease slightly for first time since pandemic began – as public housing posts more gains

Private property values slid 0.4 per cent in the second quarter of this year, the first decline since early 2020, on the back of recent curbs

Yet while some prices fell, transaction volume still increased – as resale prices for public housing recorded their 13th straight quarter of gains

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A high-rise residential project is seen under construction near private homes in the Outram area of Singapore last month. The city state’s government expects 40,000 home completions this year – the highest in the last five years – and about 100,000 by 2025. Photo: Bloomberg

Published: 11:34am, 3 Jul 2023

Singapore home prices fell for the first time in three years in the second quarter, suggesting the market is cooling on the back of the latest property curbs.

Private property values slid 0.4 per cent from the previous three months, when they rose 3.3 per cent, according to flash estimates released by the Urban Redevelopment Authority on Monday. That’s the first decline since the first quarter of 2020.

Price momentum may finally be easing after a buoyant run that saw the city state’s red-hot property market defy a global slowdown from London to Shanghai.

To keep a lid on apartment prices, the government doubled stamp duties for foreign buyers in April to 60 per cent – the highest among major markets. It also raised levies for second-home buyers.

Private homes in the Tanglin area of Singapore. While prices fell last quarter, property transaction volume increased by about 16 per cent from the previous three months. Photo: Bloomberg

“We believe the recent moderation in prices was driven by the latest round of property cooling measures in April, and we expect prices to edge up for the rest of the year,” Morgan Stanley analysts Wilson Ng and Derek Chang wrote in a note on Monday. The bank projected 5 per cent price growth for the full year.