Property prices in Singapore soared by over 60 percent from 2009 to 2013, thanks to record low global interest rates and quantitative easing in developed countries following the Global Financial Crisis.
With the various property cooling measures rolled out by the Singapore government, property prices here have seen a drop of around 11 percent from its peak in Q3 2013 through end-2016. The occupancy rate for residential units also fell from 95 percent in 2009 to 90.8 percent in 2016. “The measures that have been taken have — with each passing month and quarter I think we can say with a little more confidence — made a fair amount of progress towards stabilising the market,” said Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), at the UBS Wealth Insights conference on Monday (16 January).
In the late 1990s, during the Asian Financial Crisis, Singapore saw its property bubble burst and saw its private home prices only return to their 1996 peak level in 2009.
“(Policymakers) are very conscious, deeply conscious, that we don’t go back to the situation that we had before, because a bubble is an extremely difficult thing to deflate gently. I think we’ve been very lucky. We don’t want to go back to that situation. It’s a very careful balance. There are many mixed signals,” Menon said.