Home prices may fall more quickly by the end of the year, on the back of a growing risk of a supply glut as well as the US Fed’s expected interest rate hike, reported the media.
Barclays noted the domestic residential sector’s outlook will continue to be bleak, with sales volumes remaining depressed while prices continue to drop.
“We reiterate our negative stance on Singapore’s residential sector and expect home price declines to accelerate towards the end of 2015 as we see a risk of rising unsold inventory and a potential interest hike,” it said.
“We continue to believe the government will only start unwinding measures when prices fall a cumulative steeper 10 to 15 percent, perhaps in mid-2015.”
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
