KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Singapore has experienced a decline in home prices for the first time in five quarters, with an index of private home prices dropping 1.1% in the last quarter compared to the previous three months. This marks a reversal from the 0.9% increase seen in the second quarter and represents the first price decrease since the second quarter of 2023, according to preliminary estimates from the Urban Redevelopment Authority.
The slowdown in sales has raised concerns about Singapore's housing market, which is on track for its worst year in new home sales since the global financial crisis. Factors such as property purchase curbs and high interest rates have significantly deterred buyers.
Government Response to Housing Affordability Concerns
In an effort to alleviate public frustration over housing affordability ahead of upcoming elections, authorities are releasing the largest amount of land for private residences in over a decade. Analysts from Morgan Stanley, Wilson Ng and Derek Chang, noted in a late August report that developers face a five-year deadline to clear their inventory. A tax penalty will be imposed on builders who fail to sell a sufficient number of units within this timeframe, creating conditions conducive to falling prices.
“Conditions are already in place for prices to fall,” the analysts emphasized, forecasting lower prices from new project launches as the market adjusts.
Final figures detailing the changes in home prices will be released toward the end of October, providing further insight into the evolving landscape of Singapore's property market.
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