Singapore’s property market continue its slump in October with a 30% fall year-to-year comparison in October, despite performing better than September’s. The government state media CNA however highlighted that there was a 60% jump in sales compared to September, giving the wrong impression that the property market has made a turn.

According to analysts from Barclays, property sales volume is expected to fall further in November and December.

“We expect muted market activity in Nov and Dec as the holiday season begins; the full year 2015 sales figure could be below last year’s 7,316 units.”

In their property report, Barclays highlighted that the October’s performance is the second-lowest October sales figure since the financial meltdown in 2008. Ong Teck Hui, National Director for Reseach & Consultancy at JLL pointed out that the coming increase in Federal interest rate in US will worsen buyer’s outlook in the near-term:

“Notwithstanding the slight improvement in private home sales in October over the previous month, the market generally remains subdued as the effects of the cooling measures have been compounded by the economic slowdown and impending interest rate hike in the US. Market sentiments will remain soft through the year end, so we may expect muted market activity in the remaining two months when the holiday season begins.

Using developer sales of 653 units in November and December 2014 as a guide, new private home sales in the last two months of 2015 are likely to taper. With 6,383 units sold in the first ten months of 2015, the full year figure is likely to be below last year’s 7,316 units.”

Property developers have recently been pushing for the Singapore government to remove the cooling measures and even suggested that falling property prices will affect the quality of the residential buildings. The Singapore government have however expressed refusal to remove the cooling measures, even though they kept saying housing in Singapore is affordable for the masses.

The common mortgage servicing period is around 25 years and according to the recent UBS report on global property prices and bubbles, Singapore ranked 4th in the world for having the least affordable housing prices.

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UBS: Singapore has 4th most unaffordable housing in the world