Private homes within the Core Central Region (CCR) (pictured) is likely to fall by one to two percent quarter-on-quarter (q-o-q), according to Knight Frank Singapore.
In a report, the consultancy said luxury homes would continue to see slow demand in the coming two quarters, as prospective High Net Worth individual (HNWI) buyers are either waiting at the sidelines or are exploring other overseas markets.
“It would take at least another nine months for this market segment to recover with a gradual reduction of unsold inventory, before HNWI relook at Singapore high-end homes.” Alice Tan, Head of Research at Knight Frank Singapore, said.
Against the backdrop of on-going competition among developers, home prices within the Rest of Central Region (RCR) are expected to fall by 0.8 to 1.0 percent q-o-q, with anticipated slowing decline in the first quarter. The reported added developers are also less likely to further reduce prices due to high development costs.
Price decline of mass market homes in the Outside Central Region (OCR) could accelerate in the first three months this year, considering the high unsold inventory. The anticipated weakness in the HDB resale market, which will influence the HDB owners’ decisions to upgrade to private property, will also contribute to an expected decline of 0.8 to 1.2 per cent q-o-q.
Tan said, “Assuming that the existing policies remain in force till the end of this year, overall private home prices is envisaged to decline by four to six per cent in Q4 2015 year-on-year.”
Image source: URA
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
Source: PropertyGuru (12 Jan 2015)