According to URA, the prices for private homes continued to decline up to the last quarter this year.
From PropNex, the prices for private homes will continue to decline because of the weak demand. This weakness is brought about by different factors like additional buyer stamp duty and total debt servicing ratio. The tandem of these two puts a barrier between interested homebuyers and sellers.
On the other note, HDB prices are also affecting private home prices.
PropNex said during their report on real estate trends, HDB resale price has softened thus deducting the motivation of HDB flat owners to advance into the private property market. This has affected their purchasing power in return. It can be recalled that the HDB resell price declined 1.7% in third quarter this year.
Factors that are thought to affect HDB resale include increase in supply of HDB houses, tight housing regulations (strict MSR loans or Mortgage Servicing Ratio) and cooling measures enforced by the government.
Mohammed Ismail Gafoor, the Chief Executive of PropNex, said that with TDSR and ABSD, the prices would continue to weaken up to 2015 unless the government will withdraw some of its cooling measures.
Undoubtedly, home prices would continue to fall down. However, homes with desirable features and strategic location continue to be a hot pick for homebuyers.
Private properties to check out in Singapore include Seven Crescent, Urban Villas and Charlton 18.
