New | Singapore home prices slide by most in over seven years

Singapore home prices dropped by the most in more than seven years as developers offered discounts amid signals from the government that it won’t roll back property curbs initiated in 2009.

An index tracking private residential prices fell 1.5 per cent in the three months ended September 30 from the previous quarter, the biggest decline since June 2009. Prices fell for the 12th straight quarter, the longest streak of quarterly losses since prices were first published in 1975, according to preliminary data from the Urban Redevelopment Authority on Monday.

The head of Singapore’s central bank, Ravi Menon, said last month that the city-state doesn’t plan to ease property curbs anytime soon, even as home prices have fallen 11 per cent from a peak in September 2013 and sales have halved. That’s increasing the pressure on developers to offer discounts, payment programmes and other incentives to stoke sales.

“The haemorrhage continues for home prices,” said Nicholas Mak, an executive director at SLP International Property Consultants in Singapore. “The prices could be taking into account the delayed discounts offered in creative marketing by developers, which could be coming in with a lag.”

For example, developer OUE Ltd. offers four payment plans for its Twin Peaks condominium project off the prime Orchard Road shopping belt. The most popular of those is the deferred payment programme where the home buyer pays a small amount upfront and the rest over the next two years, according to its website.