A recent report showed that rentals of luxury homes in Singapore dropped 18.8 percent in the first quarter of 2009, a level not seen since 2006, local radio reported on Tuesday.

According to local radio 938live, a report released on Tuesday by property consultancy DTZ said that rentals of local luxury homes dropped 18.8 percent to 5.2 Singapore dollars (about 3.42 U. S. dollars) per square foot a month, and average rental values of homes in prime districts fell 16 percent to 3.65 Singapore dollars (about 2.40 U.S. dollars) per square foot a month.

Prices of luxury homes meanwhile recorded a smaller decline of 3.6 percent in the first quarter of 2009, after falling 22 percent in the fourth quarter of 2008.

The property consultancy company said that despite the recent improvement in home sales, weak economic fundamentals will weigh down hopes of a sustained recovery.