
Chart of the Day: Residential property prices are a long way away from bottoming out
Prices will fall by another 10%.
It will take another two years before private residential property prices hit bottom, according to a report by BNP Paribas.
Although the prices have already suffered a 5.5% decline from their peak in 2013, BNP Paribas believes that the price index will correct further due to limited demand, excessive supply and weakening regional growth prospects.
“A combination of weakening regional growth prospects, macro-prudential tightening and a sizeable supply-demand imbalance has taken the steam out of Singapore’s property market. In an orderly scenario, we estimate private property prices could fall a further 10% from current levels over the next two years, with direct consequences for consumption growth,” said the report.