Experts quoted in media reports believe that property prices and transaction volumes will continue their downward trajectory, after Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said during Friday’s Budget that it was still “too early” to relax the property cooling measures.
The announcement was a letdown for property players who were waiting for a reversal of some policies such as the additional buyer’s stamp duty (ABSD).
Mohamed Ismail, Chief Executive at PropNex Realty said, “The non-changing of the policies basically creates a buyer’s market for another one year or so… Serious buyers will be able to buy a property at a fair discount.”
Expecting “marginal corrections”, Ismail noted that public housing prices will drop five to eight percent this year, while private property prices will slip by around two to three percent.
SLP International Research Head Nicholas Mak sees the market continuing with its current trajectory, with prices and demand moderating.
Mak expects prices to fall between five and 10 percent this year.
However, he believes that there is still “a lot of demand and liquidity”, as potential buyers wait on the sidelines for the property cooling measures to be rolled back.
Moreover, Mak estimates that transaction volumes may fall 10 to 20 percent this year.
“The market will remain very cautious, with the volume of transactions not having a revival or any improvement compared to last year,” he added.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
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