Slumping property prices are among the biggest risks for Singapore's economy, analysts say, as a dip in construction activity drags on growth.
Singapore's economy expanded an annualized 1.2 percent in the third quarter, below expectations for a 1.8 percent rise in a Reuters poll, data on Tuesday showed.
Many analysts attribute the decline to slowing construction activity - the sector expanded 1.4 percent, sharply slower than 4.1 percent in the second quarter - but property prices may be of greater concern.
"The bigger risk for the Singaporean economy is the property asset market cooling down, rather than physical construction activity cooling down," said Seng Wun Song, regional economist at CIMB bank.
"If the pace of the global economic recovery continues to plod along rather than pick up steam, the deceleration in Singapore asset prices could be sharper than the current 10-15 percent range, which would have repercussions on equities and for the wealth effect," he added.
Prices in Singapore's prime residential market - the priciest 5 percent of the broader market - fell 7.3 percent in the first half of 2014, according to estate agent Knight Frank.
The government has enacted eight rounds of cooling measures since 2009 after prices rose more than 60 percent between 2009 and 2013, fueled by record-low interest rates, and these appear to be taking affect.