Luxury residential prices in Singapore moderated slightly in Q3 2013 as government measures continue to limit overseas buyer demand and curb speculative acquisitions, a report from CBRE Research revealed.
The report noted that capital values of new luxury homes “softened by -5.7 percent quarter-on-quarter while secondary home prices remained unchanged from Q2 2013”.
The decline in transaction volumes is attributed to the introduction of Additional Buyer’s Stamp Duties (ABSD) and the Total Debt Servicing Ratio (TDSR) framework, which sees buyers raising more cash for upfront payments.
Meanwhile, the number of foreign and permanent resident buyers of luxury homes dropped 20 percent year-on-year YTD while the number of local buyers plunged 50 percent over the same period.
“Luxury rents fell marginally due to competition from new developments and may come under further pressure as expatriate housing packages are removed,” the report added.
Overall luxury residential prices in ten key Asian markets monitored by CBRE Research continued to witness steady gains in Q3 2013, with Beijing posting an 8.6 percent quarter-on-quarter increase in average asking prices, while New Delhi recorded the biggest decline at -4.0 percent quarter-on-quarter.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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