Slowdown in Singapore Economy

The US Financial Crisis and it's effect on global economy caused market slowdown and turmoil. Joblessness has risen to 2.3 percent in the second quarter ending June 08. Jobless rate grew two quarters in a row.

Some 77,800 residents were jobless in June. The seasonally adjusted figure was 60,900, up 12 per cent from 54,300 in March. But MOM said it was comparable to the 59,700 in June a year ago.

But the labour market remained strong. A record 144,600 jobs were added in the first six months, compared with 113,800 in the same period last year. But the growth of 71,400 jobs was slightly lower than the first quarter's 73,200. Still, it was higher than a year ago (64,400).

Driven by robust building activities, employment in construction rose by a record 22,400 in the second quarter. But growth in the other sectors has moderated from the previous quarter.
(source : http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_278742.html)

The growth are largely seen in construction industry, which is largely occupied by foreigners. This does not truly reflect jobs for Singaporeans. Foreigners who became jobless, will be send back or leave Singapore. Thus, the unemployment rate are mainly Singaporeans as a whole.

Further to the uncertain economic situation, private home sales in Singapore slumped 81 percent in August from a year ago, to the lowest level since March as a combination of global financial turmoil and a traditionally unlucky month spooked buyers.

Sales of new residential projects, comprising both houses and apartments, fell to 320 units from 1,723 units sold in August last year, and sales were also down 64 percent from the 901 units taken up in July 2008, government data showed on Monday.

Singapore's financial services and export-dependent manufacturing sectors could be hit by global financial turmoil, with U.S. investment bank Lehman Brothers filing for bankruptcy protection on Monday .

Worries over Singapore's economic outlook have ended a four-year housing boom in the city-state, as price growth for private homes slowed sharply in the April-June period, rising just 0.2 percent in the quarter.

Concerns about the health of Singapore's property sector has prompted analysts to slash share price targets for developers such as CapitaLand, Keppel Land and City Developments.

(Source : http://sg.news.yahoo.com/rtrs/20080915/tap-singapore-property-c3bb44c.html)

From the economic uncertainty and weaken consumer confidence, chances are, property prices will drop in the coming months.