Singapore home sales collapsed in December

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Singapore housingPrivate home sales in Singapore – one of the world’s most expensive property markets – fell more than 80 per cent year-on-year in December 2013 as the government’s cooling measures began to take effect.

According to the Urban Redevelopment Authority, only 259 units were sold in the month, a sharp fall from the 1,410 sold a year earlier, recent data showed. The dramatic decline in sales suggests the government’s seven rounds of cooling measures are starting to pay off, as developers invest in fewer major projects and buyers face borrowing restrictions.

Singapore, along with several other Asian countries, has been concerned about how the effect of low global interest rates and high levels of liquidity have impacted its property market, which has seen prices rise over 60 per cent since 2009. Thus, authorities enacted measures to prevent the formation of a bubble.

One of its most recent measures introduced rules to ensure that a buyer’s monthly payments do not exceed 60 per cent of their income, enforced in June 2013, a move designed to ensure buyers are not caught out by a spike in interest rates.

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Reading Time: 1 minute

Private home sales in Singapore – one of the world’s most expensive property markets – fell more than 80 per cent year-on-year in December 2013 as the government’s cooling measures began to take effect.

Reading Time: 1 minute

Singapore housingPrivate home sales in Singapore – one of the world’s most expensive property markets – fell more than 80 per cent year-on-year in December 2013 as the government’s cooling measures began to take effect.

According to the Urban Redevelopment Authority, only 259 units were sold in the month, a sharp fall from the 1,410 sold a year earlier, recent data showed. The dramatic decline in sales suggests the government’s seven rounds of cooling measures are starting to pay off, as developers invest in fewer major projects and buyers face borrowing restrictions.

Singapore, along with several other Asian countries, has been concerned about how the effect of low global interest rates and high levels of liquidity have impacted its property market, which has seen prices rise over 60 per cent since 2009. Thus, authorities enacted measures to prevent the formation of a bubble.

One of its most recent measures introduced rules to ensure that a buyer’s monthly payments do not exceed 60 per cent of their income, enforced in June 2013, a move designed to ensure buyers are not caught out by a spike in interest rates.

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