(Bloomberg) -- Singapore authorities continue to keep a close watch over home property prices following last year’s steps to cool the market, the Monetary Authority of Singapore said Thursday.
“Private residential property prices and transaction activity have moderated following the property market cooling measures in July 2018,” Tharman Shanmugaratnam, MAS chairman and senior minister, said in a statement accompanying its annual report. “MAS and other government agencies continue to monitor the property market closely, with the aim of promoting stable and sustainable conditions.”
Singapore’s government introduced measures to slow price increases a year ago, including raising stamp duties for second homes and tightening loan-to-value limits for mortgages. While values have been falling, MAS Managing Director Ravi Menon said there is no impending risk of a sharp sell-off and no need to shift gears significantly on those steps.
“We have learned from experience that preventing a bubble from forming is less painful than deflating one that has fully formed," Menon said at a briefing.
Dwelling values fell for a second straight quarter in the three months ended March 31, with luxury home prices down 2.9%, the most since the quarter ended June 2009.
Earlier this month, the government cut the supply of private residential units under its land sales program in a bid to curb a glut in unsold apartments.
Menon also said he expects growth of Singapore’s financial sector to slow from last year, though it will continue to outpace the economy’s expansion.
A net 6,900 jobs were created last year in the financial services and fintech sectors, Tharman said in the statement. That exceeded a target of adding 4,000 jobs annually.