SINGAPORE: Prices of private residential properties softened by 0.5 per cent in first quarter of this year from the previous three months, the same rate of decline seen in the previous quarter, flash data for the first quarter from the Urban Redevelopment Authority (URA) showed on Monday (April 3) Analysts say the residential market is showing signs of stabilising even as private home prices slipped for the 14th consecutive quarter, with the 0.5 per cent price decline in the last two quarters easing from the 1.5 per cent fall in the third quarter of 2016. But despite the moderating price declines, they are not expecting a quick turnaround in the property market given a challenging economy, rising interest rates and uncertainty in the jobs market.
The Government’s finely calibrated easing of a few property cooling measures last month gave a knee-jerk boost to market sentiment but that has faded. Analysts say some developers may opt to cut prices of their unsold higher-end units, keeping private home prices under pressure, after regulators at the same time equalised stamp duty rates, effectively closing a tax loophole that allowed developers to offload apartments in bulk to institutional investors and wealthy Singaporeans to avoid paying stiff penalties for missing sales deadlines.
