Singapore recorded the second-biggest year-on-year drop in private property prices in Asia for the second quarter, according to an index out yesterday.
It noted that apartment prices fell 3.2 per cent in the three months to June 30 over the same period a year earlier. China was the only Asian country to fare worse, with values there dropping 5.7 per cent in the same period.
Overall, Singapore had the eighth biggest price decline among 56 global residential markets tracked by the Knight Frank Global House Price Index. Ms Alice Tan, director and head of consultancy and research at Knight Frank, said yesterday: "Prospective buyers remain cautious against the backdrop of existing cooling measures and... anticipate further price correction."
More falls in prices and rents are expected due to a range of factors, including more completed homes hitting the market, impending interest rate hikes and a faltering economy, both here and overseas, she added.
The Knight Frank Global House Price Index - which is compiled quarterly with official statistics where available and weighted by gross domestic product (GDP) - posted a marginal 0.1 per cent growth. It was the weakest growth rate since the final quarter of 2011.
Among the 56 housing markets tracked, 27 per cent recorded an annual decline in prices, said Knight Frank. "Lingering concerns over the euro zone economy, jitters in global stock markets and discussions of when, not if, a rate rise in the United States occurs are impinging on growth," the property consultancy said in a statement.
Hong Kong topped the table with a 20.7 per cent year-on-year price growth, thanks to increasing liquidity and the flow of wealthy Chinese investors into its sector.
Dubai was at the bottom of the index, with prices weakening 12.2 per cent year-on-year due to weaker demand, a strong US dollar and ongoing cooling measures.
Knight Frank noted that the housing markets in China and the US - two countries which together account for about 33 per cent of global GDP - are on divergent paths.
Mainstream prices in China are down an average of 6.2 per cent from the start of last year, while those in the US are up 7.6 per cent.