Effects of cooling measures still lingers in condo market

Singapores condominium market is still feeling the effects of the governments cooling measures as evidenced by the continuous drop in prices, reported SLP International.

In a report by Singapore Business Review, it cited SLP International's report saying that the rest of central region price index, for instance, fell 9.3 percent from its peak in Q2 2013, while prices in the outside central region dropped 6.7 percent from its peak in Q3 2013.

While the price drops may not be very high, it cannot be used as an accurate barometer of market sentiments, it noted.

The spectre of further price decline due to the cooling measures weighs heavily on the real estate market and has permeated a sense of gloom which resulted in the further drop in prices and transactions, said the report.

SLP International further noted that the rental index of mass-market private homes also witnessed the same trend it peaked in Q1 2013 before it registered a long period of contraction, dropping by an average of 3.4 percent per year.

Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories emailnikki@propertyguru.com.sg

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