Singapore private home prices fall 4% in 2014: URA

Prices of private homes fell 1.1 per cent in the fourth quarter, dragging prices down by 4 per cent in 2014, compared with an increase of 1.1 per cent in 2013. -- PHOTO: ST FILE
Prices of private homes fell 1.1 per cent in the fourth quarter, dragging prices down by 4 per cent in 2014, compared with an increase of 1.1 per cent in 2013. -- PHOTO: ST FILE

SINGAPORE - Prices of private homes fell 1.1 per cent in the fourth quarter, dragging prices down by 4 per cent in 2014, compared with an increase of 1.1 per cent in 2013.

This is the first year of overall price decline since 2008.

The decline in the three months to Dec 31 follows a slip of 0.7 per cent in the third quarter, and was higher than the estimated 1 per cent dip when the Urban Redevelopment Authority released its flash estimates earlier this month.

This means that private property prices have fallen 5 per cent over five straight quarters since the record high in September 2013, data from the URA showed on Friday.

It also marked the longest stretch of decline since March 2004.

The Government began introducing a raft of residential property curbs in 2009 - the strictest of which were slapped on the market in 2013.

This included the Total Debt Servicing Ratio, which caps borrowers' debt at 60 per cent of their gross monthly income, higher stamp duties and property taxes.

ocheryl@sph.com.sg