On April 1, the Singaporean Urban Redevelopment Authority released a report describing the development of private residential prices in the 90 days ahead of March 31 (the first quarter of 2014), revealing a 1.3 % drop in prices, adhering to a 0.9 % drop during the previous three months, allegedly the greatest decline since June 2009. Just before in 2010, 2013 saw a 1.1 % growth in prices, reduced compared to the prior year, when a 2.8 percent growth was registered.
This marked the next consecutive quarter decline in prices in Terra Hill Showflat . Specialists claim this will be setting the trend for 2014, detailing that suburban areas prices are likely to fall significantly less than those in prime districts, where residences are mainly composed of resale apartments.
For a long time, Singapore home prices have now been rising dangerously, and 2014 debuts with projections of higher interest rates and increased supply.
In 2009, the government started a plan aiming to place an end to speculations speaking of the likelihood of a housing bubble as a result of low interest rates coupled with record high home prices in the Singaporean property market. As a result, the newest loan framework dictates that lenders think about a borrower's debt when granting loans.
Furthermore, the TDSR (Total-Debt Servicing Ratio) was set at no more than 60 for eligible borrowers, while people who exceed it should be considered imprudent.
Based on the Urban Redevelopment Authority, prime districts apartment prices fell 1.3 % during the first quarter of 2014. Compared, data shows that suburban apartment prices slid 0.3 %, adhering to a 1 % drop in the earlier quarter, as areas near prime districts recorded a 2.8 % decline in apartment prices.
As HDB prices continue steadily to decline, HDB owners will find it increasingly hard to acquire a good price for his or her flat. This may result in a decline in demand from the strongest market segment to date: the mass market.
