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Singapore prices fall for fourth straight quarter on lending restrictions

Property prices in Singapore have declined for a fourth consecutive quarter, the longest losing streak in five years, as tighter mortgage measures cooled demand in Asia’s second-most expensive housing market.

An index tracking private residential prices fell 0.6% in Q3 following a 1% percent decline in the previous three-month period, according to preliminary data released by the Urban Redevelopment Authority. The decline matched the losing streak that ended in June 2009, the data showed.

The government’s five-year campaign to rein in property values has led to declines in prices and demand. Home sales fell to the lowest level this year in August as developers offered fewer projects amid cooling demand from the long-standing property curbs, URA data in September showed.

The government unveiled new rules in June 2013 for how financial institutions grant property loans to individuals. Under the new loan framework, mortgages shouldn’t push a borrower’s total debt-servicing ratio (the percentage of their net income that must be spent on mortgages, loans and credit cards etc.) above 60%.

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