Prices of residential properties, both private and public, may see a slow but continued decline in 2015. This year, the resale non-landed property market was ruled by an undulating price chart. After a recent rise in prices in October, prices once again fell in November. Property experts have found it impossible to predict future trends from such irregular movements and can only report the figures as they are.
In October for example, despite an increase in the number of mortgage sales and non-performing loans, prices of resale homes picked up nevertheless. Most of the information comes from URA’s quarterly statistics of private property transactions with caveats lodged. This however may not truly reflect home sales volume and prices, as they exclude factors such as developers’ discounts and rebates. But URA has mentioned disclosing prices of individual units in the near future. And perhaps a more frequent report would be helpful to the industry.
On the HDB resale front, the Minister for National Development, Mr. Khaw Boon Wan, has said that he hoped to see “single digit” fall in prices in 2015, indicating a gentle and gradual decline similar to that in 2014. The government is likely to tread lightly in this area as a drastic fall in home prices will bring about dissent from current home owners and will possibly affect their position in the next election. Buyers can expect a fall of about 8 per cent next year.