In what seems like an attempt to shore up crashing property prices, the Singapore Government has in its latest Government Land Sales (GLS) Programme announced the building of only 2,130 residential units for the next six months – a 28.8% reduction compared to its previous bi-annual GLS programme.
Singapore’s property resale price index has been consistently falling every quarter since its peak in the 2nd Quarter of 2013. However, housing prices is still unaffordable and Singaporean property owners remain over-leveraged from mortgage loan, which typically span from 25 to 30 years.
In a recent report by Barclays, the Singapore property prices will be expected to continue falling until the June of 2016 because of the upcoming Singapore General Elections. It appears the Singapore Government is trying to lower housing prices to appease the younger generation of Singaporeans who are priced out from exorbitant housing.
You may read the original URA’s report from here.
Barclays: Singapore property prices to increase only after GE2016