Singapore's home-price decline accelerated in October, falling 1.2 percent from the previous month, adding to evidence that the government's efforts to cool the property market are working.
The city-state's residential property index fell to 159.1 points last month after declining a revised 0.9 percent in September, according to the National University of Singapore's Singapore Residential Price Index. The measure tracking prices in the central region decreased 1.4 percent in October.
Record home prices amid low interest rates raised concerns of a housing bubble and prompted the city-state to introduce new taxes and higher minimum down-payments since 2009 to curb speculation in Asia's second-most expensive housing market. Home sales have been falling in the past four months after the government imposed new rules in June governing how financial institutions grant property loans to individuals.
'The latest statistics is a reflection of the current measures starting to bite the residential market,' said Alice Tan, head of consultancy and research at Knight Frank LLP, in Singapore. 'Price quantum is still the key consideration for many prospective homebuyers.'
Home sales fell 19 percent in October to 1,009 units from a month ago, according to data from the Urban Redevelopment Authority released Nov. 15. From the previous year, sales dropped 48 percent, the data showed.
To contact the reporter on this story: Jasmine Ng in Singapore at jng299@bloomberg.net
To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net
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