Singapore Private Home Prices Fall for First Time in Over a Year

By Amanda Lee

Singapore's private home prices fell for the first time in over a year on a slower sales momentum.

The private residential property price index declined 1.1% sequentially in the third quarter, reversing from the second quarter's 0.9% increase, and marking its first decline since the second quarter of 2023, according to flash estimates released by the Urban Redevelopment Authority on Tuesday.

Sales transaction volume dropped by about 11% in the third quarter on a quarterly basis, the data showed.

Although macroeconomic conditions remain sound, the URA said market sentiments continue to remain sensitive to geopolitical developments and global interest rates.

Domestic mortgage rates are expected to remain high relative to the low levels seen over the past decade, despite the U.S. Federal Reserve's recent 50 basis point cut, it added.

Prices of landed properties decreased the most, falling 3.8% in the third quarter, swinging from a 1.9% increase in the second quarter. Non-landed home prices declined by 0.3% in the third quarter, reversing the 0.6% increase in the previous quarter.

Overall private housing prices rose 1.1% in the first three quarters of this year, as compared with a 3.9% rise over the same period in 2023, the data showed.

A decrease in demand for housing in the third quarter could have led to the price decrease, said Christine Sun, chief researcher and strategist at real estate agency OrangeTee Group.

"Many consumers may have exhibited greater caution in their purchasing decisions, as they were more restrained in their affordability due to the elevated cost of living and interest rates," Sun added.

Write to Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

October 01, 2024 01:32 ET (05:32 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.