Singapore home prices dipped for a third straight quarter in the April-to-June period, official data showed on Tuesday, as property cooling measures continued to bite.
Prices of private residential property dipped 1.1 percent on quarter, according to figures from the Urban Redevelopment Authority. That follows a 1.3 percent drop in the first quarter of the year.
In the core central region, prices fell 1.5 percent after falling 1.1 percent in the previous quarter, marking the fifth consecutive quarter-on-quarter decline.
Singapore property prices have surged over 60 percent since 2009, propelled by rock-bottom global interest rates and quantitative easing in developed economies, even as Singapore's government has enacted a series of cooling measures to prevent a bubble from forming.
Property prices and sales in the city-state have been closely watched for cues on whether the government can safely guide the market to a soft landing amid tightening global liquidity.
There are concerns Singapore's borrowers may become stretched if interest rates rise and there are concerns they could dump their properties into an already slowing market if their payments rise.
But by most counts, analysts do not expect a crash for the market but prices could fall as much as 20 percent in the short term.
"The market is up for a correction to adjust for lower demand and higher supply and the level of correction can be as high as 20 percent," according to a note from property consultant Voyage Research.
"Property prices can move as much as 25 percent south without causing a vicious cycle towards a crash.The trigger to any crash is a black swan event which means you will only know when it comes," the note added.