Singapore’s home prices slid for a third 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 1.1% to 209.3 points in the three months ended June 30, following a 1.3% decline in the previous three-month period, according to preliminary data released by the Urban Redevelopment Authority today.
Declines may deepen as the government extends a campaign to cool prices that started in 2009, with Chesterton Singapore Pte forecasting they will drop as much as 8% this year. Singapore last June capped the amount individuals are able to borrow, adding to measures that included new taxes and higher down-payments.
“The price moderation last quarter was lower than expected, which probably means that the measures are here to stay for now,” said Donald Han, managing director of Chesterton Singapore Pte, a real estate consulting company. “It’s a healthy correction though volumes have dropped by half since the loan measures last year.”
The FTSE Strait Times Real Estate Index lost 0.6% as of 10:57 a.m. in Singapore, heading for its lowest close since April 16.
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