Record home prices amid low interest rates raised concerns of a housing bubble and prompted the city-state to introduce new taxes and higher minimum down payments since 2009 to curb speculation in Asia's second-most expensive housing market. Home sales have been falling in the past four months after the government imposed new rules in June governing how financial institutions grant property loans to individuals.
“The latest statistics are a reflection of the current measures starting to bite the residential market,” said Alice Tan, head of consultancy and research at Knight Frank LLP in Singapore. “Price quantum is still the key consideration for many prospective homebuyers.”