Private home prices in Singapore could drop by up to 3.5 percent this year, says one analyst.
Despite signs of a bottoming out, private home prices are expected to ease further this year, albeit at a gradual pace, reported The Straits Times.
The drop in prices, however, is expected to spur interest from home buyers looking for attractive deals.
Data from the Urban Redevelopment Authority (URA) showed that private home prices fell by three percent in 2016, the smallest price decline in three years, and by 0.4 percent in Q4 2016, or its 13th consecutive quarter of price falls.
“Due to the lack of positive economic news, we are expecting that prices will generally continue their decline. However, buyers may capitalise on this continued window of falling prices to snag some attractive deals,” said Eugene Lim, Key Executive Officer of ERA Realty Network, who expects private home prices to drop by three to 3.5 percent this year.
“The current price points attracted home investors’ interest in 2016, and we predict that the volume of transactions in the private residential segment to close the year at 16,000, a 13 percent increase from 2015,” added Mohamed Ismail, Chief Executive Officer of PropNex Realty.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
