Home price index may increase by 8% for 2011

OCR will lead the way with 10% growth, said PropNex.

According to PropNex CEO Mr Mohamed Ismail, the RCR and CCR price indices will also increase by 8% and 3% respectively.

While the overall 20.4% drop in the number of transactions Q-on-Q to 7,336 for the whole of Singapore can be attributed to the continued rise in prices, the drop in transaction for the mass market or OCR may have been partly due to the increase in mass market prices per square foot, leading to some resistance from mass market buyers.

Mr Ismail surmises that many potential consumers may have been put off by some of the high prices of mass market projects of late, a few of which breached the $1,000psf mark.

He further details the decline could also be attributed to HDB upgraders who may have been priced out of the mass market due to the lower LTV.