Singapore selling slump

Just over half - 55 per cent - of the 2,200 luxury homes constructed in Singapore between 2006 and 2008 remain unsold, according to a recent report compiled by CB Richard Ellis...

The housing slowdown in the city-state was further illustrated in an additional report issued by the Swiss bank UBS which revealed that homes in two high-profile residential schemes recently sold for 20 per cent under their launch prices.

Furthermore, various reports suggest that a house in the upscale waterfront development of Sentosa Cove, is on the verge of being repossessed, which this time last year, was thought to be unthinkable, and further reinforces the fact that the financial slump is even affecting the country's wealthiest individuals.

The high-end residential market in Singapore is considered by many to be oversupplied, and signs that the local property bubble has finally burst now appear apparent. In 2008, the volume of transactions slowed considerably, with less than 4,400 new private homes purchased, down from the record of 14,811 units in 2007.

Singapore property prices are expected to continue their downward trend this year, having recorded an average price drop of 4.3 per cent in 2008, according to the state's Urban Redevelopment Authority, compared to 31.2 per cent growth in 2007.

Source: www.homesoverseas.co.uk/news