Prices of private homes are likely to see a slight decline due to the government’s recent cooling measures, said Liew Mun Leong, chief executive and president of CapitaLand.
Private home prices were on track to dip “a little” as a result of the new measures aimed at dampening speculation, said Mr. Liew at a Mid-Autumn Festival lunch.
However, he refused to estimate the quantum of any potential fall, adding that the measures would not have an impact on the high-end residential market.
Industry sources believe that there is no need for developers to lower prices for current projects, but they are expected to moderate price expectations for new project launches.
Buyers’ affordability could be affected by the requirement for a higher upfront cash component, though this would not affect genuine homebuyers, according to the Real Estate Developers’ Association of Singapore (Redas) during the event.
Redas also believes that private homes remain within the reach of first-time homebuyers, with the affordability ratio standing at 36 percent for the segment, below the 40 percent average.