Singapore private housing prices decline, ending a year-long upward trend.

• Last quarter, the Urban Redevelopment Authority's private home price index decreased by 1.1% compared to the previous three months.
• In the third quarter of 2024, sales transaction volume decreased by approximately 11% compared to the previous three months. During the first three quarters of 2024, sales transactions were down 8.1% compared to the same period in the previous year.
• According to HDB flash estimates, the resale prices of Housing and Development Board flats in Singapore increased by 2.5% in the third quarter compared to the previous one.

On Tuesday, preliminary market data showed that Singapore's private home prices dropped for the first time in five quarters, coinciding with weak sales.

The Urban Redevelopment Authority's private home price index decreased by 1.1% in the last quarter compared to the previous three months, according to the data released.

The index experienced its first drop since the second quarter of 2023, with prices up only 1.1% in the first three quarters of 2024 compared to a 3.9% gain in the same period the previous year.

In the third quarter of 2024, sales transaction volume decreased by approximately 11% compared to the previous three months. During the first three quarters of 2024, sales transactions were down 8.1% compared to the same period in the previous year.

Despite macroeconomic stability, the economic outlook is uncertain due to market sensitivity to geopolitical events and global interest rate fluctuations, as stated by the authority.

In the third quarter, some buyers delayed purchasing homes in expectation of the U.S. Federal Reserve's September interest rate reduction.

Despite the Fed's rate cuts, Singapore's mortgage rates are predicted to remain higher than the lows experienced in the past decade.

When purchasing properties and taking on mortgage loans, households should exercise caution.

The Urban Redevelopment Authority's estimates for the third quarter were based on contract prices and data on units sold by real estate developers up until mid-September. The authority will release a more complete set of property statistics for the third quarter on Oct. 25.

The resale prices of Housing and Development Board flats in Singapore increased by 2.5% in the third quarter compared to the previous one, while HDB resale volumes rose by 20% quarter-on-quarter, according to HDB flash estimates released on Tuesday.

The government in Singapore constructs, sells and subsidizes public housing flats, in which over 80% of residents reside. Recently, local authorities implemented measures to regulate the public housing market.

HDB stated that the government will closely monitor the property market and make policy adjustments as needed to maintain a stable and sustainable market.