Preliminary official estimates released Monday showed that private property values fell 0.4 percent from the previous three months. It was the first decline in home values since the first quarter of 2020.

The Singapore government is understood to have doubled the stamp duty on foreign buyers to 60 percent in April, the highest among major markets, in a bid to curb rising apartment prices. It also raised the levy on second-home buyers.

Morgan Stanley analysts Wilson Ng and Derek Chang said on Monday, "We believe the recent price slowdown was driven by the latest round of property cooling measures in April, and we expect prices to rise modestly for the remainder of the year." The bank expects prices to rise by 5 percent for the full year.

Data from the Singapore Urban Renewal Authority (URA) showed that while prices fell last quarter, transaction volumes rose by about 16 percent from the previous three months. Home sales reached a one-year high in May as tight supply eased with the launch of new developments.

"We continue to see signs of a slowdown in the property market," Singapore's Minister for National Development Desmond Lee said after the data was released, "and we also continue to increase housing supply to meet demand."

Singapore's real estate boom has also spilled over into the public housing market. The Housing Development Board's secondary housing price index hit a new high in the second quarter, rising 1.4 percent from the previous three months. It was the 13th consecutive quarterly increase.

Singapore, one of Asia's four little dragons, was once the second hottest Asian city in the property market after Hong Kong. However, the current rising interest rates and the latest round of real estate regulation measures to curb the demand for mortgage loans from various banks in Singapore, or the impact on the Singapore property market.

According to data released by the Monetary Authority of Singapore (MAS), housing loan growth slowed to 1.9% back in the first 11 months of 2018, less than half of the 4.2% growth rate in 2017.

The chart above shows the Singapore Residential Price Index (NUS SRPI) compiled by the National University of Singapore, from which it can be seen that the smaller Singapore property market has attracted a large number of overseas speculators since 2008, when the first round of QE was launched in the United States, and the Lion City jumped to become the second highest city in Asia, after Hong Kong, China, in terms of housing prices.

Since 2009, Singapore has raised the threshold for home purchase, the government requires borrowers to make monthly mortgage repayments of no more than 60% of their income, while imposing a high stamp duty on housing transactions, but house price growth has not slowed down, the country's house prices soared all the way to 2013.

In the face of soaring prices, the "intolerable" Singapore from 2013 to significantly increase the property market regulation, if the purchase of property less than 5 years to resell, you need to pay different levels of stamp duty: 16% resale within a year, the second to fourth years, respectively, 12%, 8%, 4%, the fifth year from the exemption, in order to combat short-term property speculation.

After prices peaked in 2013, Singapore house prices began a four-year-long decline, with a cumulative drop of 12%.

It was not until 2017 that Singapore's controls on the property market were relaxed. Previously, sellers who held their homes for less than four years before selling were subject to a stamp duty of 4% to 16% of the house price. On March 11, 2017, the Singapore government announced that with immediate effect, the time limit was shortened to three years, the stamp duty rate was reduced to 4% to 12%, and some lending restrictions were eased.

Subsequently, Singapore house prices also rose in the second quarter of 2017, and for five consecutive quarters.

However, Singapore, which is "used to" curbing property speculation, issued a joint announcement by the Monetary Authority of Singapore, the Ministry of National Development and the Ministry of Finance on July 5, 2018 to increase the Additional Buyer Stamp Duty (ABSD) rate by 5-15 percentage points from July 6. -15 percentage points and tightened loan limits.

The Singapore government said the move is aimed at cooling the property market and keeping home price increases in line with economic fundamentals. The announcement said that with rising interest rates and a strong housing supply side, unchecked property price hikes could lead to an unstable market pullback if left unchecked.

Christine Li, head of research at Cushman Wakefield in Singapore, pointed out that the "cooling measures" implemented by the Singapore authorities to control rising prices, as well as global trade frictions and stock market volatility, have hit the high-end residential market, in addition to the lack of new homes in prime locations In addition, the lack of new homes in prime locations is also one of the reasons for the decline in prices.

Will Singapore houses continue to appreciate in value in the future?

To determine the future of a country's house prices or real estate market trend depends on three points. First: short-term financial, policy and currency, second: medium-term land supply, and third: long-term population growth.

Singapore is known as an economic powerhouse with a strong and stable economic base. Singapore is the world's most competitive economy, ranked first in the world for political and national operational stability, and ranked fourth in the world for total foreign investment inflows.

In addition to its strong economic fundamentals, Singapore has a healthy economic growth. In just five decades, Singapore has grown into one of the most advanced economies in the world, and its Gross Domestic Product (GDP) remains high on the regional list, higher than major Asia-Pacific economies such as Australia, Hong Kong and New Zealand.

Singapore's employment rate has remained high, thanks to its flexible, adaptable and highly motivated workforce. The Singapore government also has a strong commitment to talent development: in addition to a top-notch education system, Singapore's nationwide skills development program ensures that the people keep up with changes in the global economy.

Singapore receives more total FDI than most developed economies in the world, with over 10% of total FDI flows to Asia going to Singapore. Companies have confidence in the potential of investing in Singapore, thanks to the benefits of global capital and low-risk investments.

The Singapore currency is issued by the Monetary Authority of Singapore (MAS), which is both the central bank and overall financial regulator of Singapore. All currency issued in Singapore - estimated at just over S$30 billion - is backed entirely by gold, silver or other assets held by MAS.

As of 2020, the Monetary Authority of Singapore has over $270 billion in assets. The Singapore dollar is widely regarded as one of the strongest and most stable currencies in the world.

Singapore covers an area of only 710 square kilometers, with limited land resources and an inch of gold. The Singapore government also controls the supply of land in order to avoid oversupply, which could lead to a decline in property prices.

The Singapore government has been closely monitoring the supply of land and the development of the Singapore property market to ensure a balance between supply and demand, which will help promote a stable and sustainable Singapore property market.

Singapore property prices fall for the first time in three years! Is it a good time to invest in home ownership? Will the value appreciate in the future?

Singapore has a long history of attracting top companies from around the world as well as significant investments, and the economy is doing well with consistently high employment rates.

According to the latest SingStat statistics for 2022, Singapore's unemployment rate is only 2.1%, the lowest in the developed world.

Singapore is a multicultural and immigrant country. In order to maintain a sustainable population and the future growth of Singapore, the Singapore government aims to attract the global elite and bring in foreign talent.

Singapore's low fertility rate will result in a rapidly aging citizenry if new immigrants are not brought in. Therefore, the Singapore government released a white paper on population in 2013 that outlines Singapore's population policy. The Singapore government plans to increase Singapore's total population from the current 5.45 million to between 6.5 million and 6.9 million by 2030.

To sum up, the long-term property prices of a country will rise or not, depending on the employment rate and population growth. So all of you who want to buy a house in Poe Island to invest in the old iron or discretion, do not blindly in the low point to buy with the wind.