Latest reports from Knight Frank Global House Price Index show that there has been a 3.2% drop in the prices of the non-landed privates homes in Singapore over the past year. These include non-landed development categories such as Sturdee Residence, Principal Garden and Thomson Impressions.
Some 56 countries were tracked in the report and these were ranked according to the annual percentage change in the prices of homes over the same duration. Singapore ranks 49th position in the Knight Frank report.
Part of this is due to government regulations in the industry over the past few years. The Singaporean government has instituted a series of cooling measures in order to cool down the property market and blunt the pace at which homes are being sold. This has had the effect of pushing the prices down over the years.
Singapore is not the only country that has been cooling down its property market. Hong Kong has also been deploying cooling down measures on its hot property marker although the mainstream prices have risen by 20.7%, which is the highest globally.
According to Knight Frank, the spending by the highly liquid wealthy Chinese investors many of whom have forayed into Hong Kong’s residential sector has driven part of this. This has seen the number of homes sold in the first half of 2015 exceed 8,700.
Other countries that experienced the highest annual growth rate in the year ending June 2015 include New Zealand, which grew by 11%; Australia, which grew by 7% along with Indian and Indonesia, which grew by 6%. China and Singapore experience the lowest slump in private homes prices over the same duration.
On the global scale, the index rose marginally by only 0.1% between June 2015 and June 2015. This has been the weakest rate of growth since Q4 2011.
The report further states that 27% of the housing markets that were tracked around the world had experienced an annual decline in their prices. However, four years ago, that figure was 44%.