By Mr. Propwise
From the URA’s recent release of the 4Q2011 private residential property index, property price increases in Singapore have almost screeched to a halt. Prices were up just 0.2% in 4Q2011 on a quarter-on-quarter basis and 5.9% on a year-on-year basis.
At the current levels the price index is 16.2% above the previous 2Q2008 peak, and 13.7% above the previous all time high in 2Q1996.
Figure 1 – URA Property Price Index
What is interesting to note is that the rate of growth of the PPI has been slowing for 9 quarters, i.e. property price growth has been decelerating continuously, and is already close to zero. This is likely due to concern over the slowing economy, worrying global economic situation especially with the troubles in Europe and weak growth in the US, combined with the dampening effect of multiple rounds of government measures.
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