According to Knight Frank’s Global House Price Index, Singapore posted the second-highest drop in private home prices among Asian countries in the last quarter, with only China coming behind.
The report was released last week showing that house prices in Singapore have fallen by 3.2% in the second quarter from the same period of last year. China is the only country that comes behind Singapore with a drop of 6%.
Prices of private non-landed homes in Singapore could decline by 3-4% on a yearly basis by the Q4 according to Knight Frank Singapore’s Director and head of consultancy and research, Ms Alice Tan stated:
“Singapore’s continual fall in non-landed private home prices demonstrates persistent weakness of the market, with prospective buyers remaining cautious against the backdrop of existing cooling measures and in anticipation of further price correction.’
As it is expected, according to Ms Alice Tan, Singapore’s private home market will face downward pressure both in price and rental performance, combining factors including the rising completed supply of private homes, impending in interest rates, macroeconomic uncertainties and continual slowdown in Singapore’s economy.