Luxury home prices in Singapore fell during the second quarter as Asia’s high-end residential market showed signs of softening amid tighter mortgage lending and rising interest rates, property services firm CB Richard Ellis said on Monday.
Singapore luxury home prices declined by 1.7 per cent in local currency terms in April-June from the preceding quarter, while average rents fell by 1.9 per cent as completed units came onto the market, CBRE said in a statement.
In contrast, Hong Kong property values rose 8.9 per cent quarter-on-quarter although the pace was slower than the 14 per cent seen in the first three months of the year.
‘Tightened mortgage lending and rising interest rates continued to impact on buyer demand in most Asian markets in the second quarter of 2011,’ CBRE said.
‘In Singapore, no new luxury residential projects were launched during the second quarter as existing projects continued to struggle to attract buyers,’ it added.
CBRE said its Asian Luxury Residential Capital Value Index rose by 2.5 per cent in the second quarter, slower than the 5.5 per cent quarter-on-quarter increased in January-March.
