The gruelling home price deadlock in Singapore may finally be broken this year as sellers and developers surrender to the demands of cost-conscious buyers, revealed Singapore Business Review citing a UOB report.
The report stated that while new home sales have dropped significantly, prices have stayed relatively high due to developers’ holding power.
Nonetheless, UOB expects to see some resolution to the stalemate this year as sellers and developers capitulate on the back of weakening rentals and rising interest rates.
The increased willingness of sellers and developers to reduce prices could “help spur inventory clearance as more price-sensitive demand returns”, the bank said.
As such, UOB expects prices to private units to fall by a further five to 10 percent this year.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
