Car sales squeezed by tighter rules
According to the Singapore Department of Statistics, the retail sales in March fell 7.4% as compared to a year ago. Most of the fall was due to a 32.7% decline in sales of motor vehicles. If sales in motor vehicles were to be excluded, retail sales would gain 1.2% year on year. This comes as no surprise since new cooling measures announced during the budget speech has made car ownership tougher for Singaporeans. 

Other sectors which took the hit were telecommunications apparatus & computers, furniture & household equipment and petrol service stations. All these sectors registered declines of between 3.4% to 10% year on year.

In contrast, sales of consumer goods (food & beverages, supermarkets, departmental stores, recreational goods, provision & sundry shops and medical goods & toiletries) jumped between 3.9% and 8.8% year on year.

Local property market finally slowing down
Separately, the Urban Redevelopment Authority announced that home sales in April fell 51% from a record in March and residential prices posted the smallest gain in three quarters. Previously, property consultants mentioned that sales in March were probably not sustainable because of the sharp discounts on the new launches.

This is good news for the Singapore government who has been trying to rein in the rocketing property prices in the country. However, government officials are not pulling back on the curbs. In its statement released yesterday, officials mentioned that there will be five residential sites offered in May which will cater to about 2,725 homes.

More property taxes in the works
In addition, there are plans to raise taxes for luxury homeowners and residential properties that are rented out. Singapore Finance Minister Tharman Shanmugaratnam said that the higher tax will apply to the top 1% of homeowners who live in their own residences.

Source: Macquarie Research - 16 May 2013