The prices of Singapore’s private properties decreased by 0.1% in the last quarter of 2018 even as prices rose 7.9 percent for the entire year.
Photo by Show En Kang
According to flash estimates from the Urban Redevelopment Authority (URA), prices of landed homes led the slowdown, falling by 1.8 per cent, reversing a 2.3 per cent rise in the third quarter. Prices of condominiums and private apartments edged up 0.3 per cent after no change in the previous quarter.
Prices of non-landed private residential properties decreased by 1.5 per cent in Core Central Region (CCR), compared to the 1.3 per cent increase in the previous quarter.
The introduction of the latest round of cooling measures in July 2018 has had a detrimental effect on Singapore’s property market which had earlier showed signs of rebounding as all en bloc sales fell through.
Despite the gloomy outlook for 2019, property experts believe there is still a silver lining especially in the luxury property segment as cash-rich foreigners continue to flock to Singapore to invest in properties.
Singapore’s additional stamp duty of 15% on foreigners is still less than the 30% imposed by Hong Kong whose property prices are one and a half to two times higher.
Unlike other countries like Australia, New Zealand, United Kingdom and Canada, Singapore does not impose a capital gain tax on foreigners selling their properties.