Singapore Home Sales Plummeted Almost 50%

Singapore home sales down 49 percent in December from the previous month, due to strictcredit restrictions to lower demand in the housing market the second most expensive in Asia.

Developers sell 384 units last month compared with 759 units in November, according to datareleased Friday (15/01) by the Urban Redevelopment Authority. Preliminary annual calculations about 7528 compared to 7316 sales units in 2014, the data showed. While the number of annualrose slightly compared with last year, it's still half of that recorded in 2013.

Singapore home prices down for the ninth quarter, reports the longest streak in 17 years, astighter mortgage restrictions that suppress demand. The index tracking prices of private housing was down 0.5 percent in the three months ended December 31 from the previous quarter, according to preliminary data from the Urban Redevelopment Authority on 4 January. It shows annual decline 3.7 per cent, almost equalling the 4 percent decline in 2014, the first annual decline since 2008.

Monthly sales data from the Urban Redevelopment Authority can be revised and the final salesfor year 2015 will be released later this month.

The City Government started to introduce restrictions on residential property in 2009 due to lowinterest rates and demand from foreign buyers raised concerns that market too. They have included the cost of debt service payments on 60 percent of the borrower's monthly income,bea higher postage labels on home buying and real estate tax increase.

Singapore was ranked the second most expensive city to buy luxury homes after Hong Kong,according to Knight Frank wealth report by 2015.