While homes sales is presently booming since the second quarter of the year, analyst supposes that private home sales prices will rise again, a gyrate from recent predictions that in 2010, prices will be continuously decline. In the midst of the gained confidence, recommendations from analysts about some property stocks have improved.
Based on the officially released statistics from Urban Redevelopment Authority, in the first quarter, residential price index terribly went down, a decline of 14.1 percent.
Yesterday, Gregory Lui and Elaine Khoo, analysts from Deutsche Bank, said, “A bottom has been established for the housing market, as price cuts have catalyzed latent demand and accelerated inventory clearance, in our view.”
With this, residential price index is expected to rise by the second half of the year or in 2010. Last May 19, UBS Research Analysts Michael Lim and Regina stated, “We think it suggests prices are stabilising and could potentially rise 5 to 20 percent in 2010.” They also agree that there is a possibility for higher prices as early as the second half of the year and in 2010.
Unlike the predicted 10 percent drop in 2010, Goldman Sachs is now projecting a gain of 5 percent in the prices of private homes by next year.
In the May 12 report, the bank explained, “The recent pick-up in transaction volumes in the primary residential market is a harbinger of prices stabilisation being just around the corner, in our view.”