Local home prices see biggest drop across Asia Pacific markets in Q3

Prices are expected to retreat even further.

Home prices in Singapore have posted the biggest drop across several Asia Pacific markets in the third quarter.

According to a report by JLL, home prices in the island slipped 4.3% year-on-year in the past quarter, as tighter bank lending and extra stamp duties continue to weigh on market sentiments.

The report further noted that prices in Singapore will continue to correct in the coming quarters, with a decline of -2% to -6% expected in the quarters leading up to the end of 2015.

The drop in Singapore’s home prices is in strike contrast to cost increases in other markets. Manila posted the biggest year-on-year increase in residential property prices at 12.7%, followed by Shanghai at 8.9%.

“Modest price growth is expected in Beijing and Shanghai as sales volumes may improve in the next 12 months after the loosening of mortgage lending policy. In emerging SEA, most markets should see moderate price growth supported by persisting buyer interest. However, capital value growth in Kuala Lumpur is likely to be driven by the introduction of higher priced units,” JLL stated.