The Urban Redevelopment Authority reports that price rises are easing in Singapore as cooling measures take effect. The Resale Price Index has dropped for the first time since 2009 and local experts say this is a good sign the measures are working, although the drop of 0.9% over three months is more than what analysts were expecting. In response, developers are reportedly beginning fewer new projects as sales numbers also begin to ease. For more on this continue reading the following article from Property Wire.
The price of homes in Singapore are still climbing but the rate of growth has slowed, according to the latest data from the Urban Redevelopment Authority.
The figures show that prices increased by 0.4% in the third quarter of 2013, down from 1% in the previous quarter.
And in some real estate sectors prices are actually following, for example the Core Central Region (CCR) where values declined by 0.3% in the third quarter, following a 0.2% fall in the previous quarter.
In the Rest of Central Region (RCR), prices were down by 0.9%, the first decrease recorded in the region since the first quarter of 2012.
Prices in the Outside Central Region (OCR) increased by 2.2% and rentals of private residential properties increased by 0.2%, a slight decline from the 0.3% increase recorded in the second quarter of 2013.
As a result of the slowing of the residential property market developers are launching fewer new projects. They sold just 2,430 properties in the third quarter of 2013, down significantly from the 4,538 sold in the second quarter and new launches totaled 3,313.
Prices of resale apartments have fallen more than expected in the last three months, according to third quarter data from the Housing and Development Board (HDB).
The Resale Price Index (RPI) fell by 0.9%, the first decline to be registered since the first quarter of 2009 and a spokesman said that it is now clear that cooling measures are working to slow down the residential property market.
Resale flat sales fell to 4,529 in the third quarter of this year, down 13% from the 5,235 sold in the previous quarter.
This article was republished with permission from Property Wire.