A rising share of top-end luxury condominiums in Singapore are being sold at a loss and a smaller percentage for a profit, suggesting a cooling market that has been created in part policymakers’ efforts to curb excessive leverage.

A rising share of top-end luxury condominiums in Singapore are being sold at a loss and a smaller percentage for a profit, suggesting a cooling market that has been created in part policymakers’ efforts to curb excessive leverage, according to the Business Times (of Singapore). Fresh industry figures issued yesterday also reinforced the cooling message.

The BT report cited figures from STProperty.sg. The report said some 7 per cent of transacted units in the prime units 9, 10 and 11 sold at a loss in the first eight months of 2014, compared with 5.5 per cent that did so in the same period a year ago.

According to data on global markets from Knight Frank – issued yesterday – Singapore house prices (all categories) fell 2.4 per cent in the second quarter of this year versus the same period in 2013. Quarter-on-quarter prices fell 0.8 per cent.

The Monetary Authority of Singapore has acted in recent months, through leverage restrictions and other curbs, to prevent a build-up of undue debt exposure in the real estate market. Given the close correlation of the Singapore dollar to the US dollar, and Singapore’s relatively restricted supply of property, managing the real estate market is a significant public policy issue. Prices had been also boosted in recent years by the city-state’s rising prominence as a wealth management centre.

The report said fewer people are profiting from their resales too. Some 62.2 per cent enjoyed any capital gains - a drop from 83.5 per cent a year ago. And 4.5 per cent sold without making a profit or a loss (versus 0.4 per cent a year ago).