, Singapore

Chart of the Day: Check out Singapore's five major property price corrections since 1983

This just goes to show how inseparable the market is from economic shocks.

Singapore economy and its property market are inextricably linked, as this chart from Morgan Stanley shows.

Singapore’s private housing market has experienced five major price corrections, including the current property downcycle. All the episodes have coincided with an economic growth slowdown, which was in turn brought about by an exogenous macro shock.

In December 1983, the cumulative collapse in prices were 36.3%. It was followed by June 1996, when prices were down 44.9%.. The third price correction came in by June 2000, with prices down 20%.

The fourth collapse in prices started in June 2008, when the market recorded cumulative price change of -24.9%.

The fifth downturn started in September 2013 and has been going on until now. Currently, the cumulative change in prices were at -11.7%.
 

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