Tax hike sees singapore house prices fall for first time in three years

Singapore's house prices have fallen for the first time in three years in the wake of the government's new tax on purchases.

According to Urban Redevelopment Authority figures released this week, the city-state's private residential property price index fell 0.1% at the end of the first quarter of 2012 compared to the previous three months.

Nicholas Mak, executive director at SLP International Property Consultants in Singapore, told Bloomberg that although the rate of decline was minuscule it would still have an effect.

"The decline last quarter has been marginal, but it will have a psychological impact on people," Mak said. "The rate of decline can increase this quarter but I don't think it will exceed 1%."

Source: OPP.org.uk