Home prices suffer longest period of contraction in more than a decade

HDB resale prices fell again as tighter mortgage curbs continue to cool demand. According to HDB, resale prices fell 1.0 per cent to 135.6 points — the seventh consecutive quarter of decline. This continued decline comes after a 0.7 per cent and 6.2 per cent contraction in 2013 and 2014 respectively. The last time HDB resale prices fell for an extended period was way back in 2000 when prices fell for eight consecutive quarters from Q2 2000 to Q1 2002.

Private residential prices fell 1.0 per cent in Q1 2015 — the sixth consecutive quarterly decline since Q4 2013; as the government’s five-year campaign to rein in property values continue to curb demand. The drop is now more prolonged than during the global financial crisis, when prices slid for four consecutive quarters between the middle of 2008 and mid-2009.

With Singapore’s property market continuing to operate in a tight financing and regulatory environment, it remains in the down-cycle.

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