No "severe" correction for Singapore property prices: Credit Suisse

Fears exaggerated; expect "flattish" property prices.

With investment demand waning and homebuyers holding off on purchases, it may seem as if Singapore property prices are headed for a startlingly severe crash.

But the situation might not be as terrible as it looks, according to Credit Suisse in its latest Singapore property sector review.

"Sales volumes are likely to moderate, but projects with good offerings will continue to show strength. We also believe there may be potential delays in supply due to construction limitaitons which may lower the risk of an oversupply," said Credit Suisse's Yvonne Voon.

"We maintain our view of flattish property prices. Interestingly, in the last 40 years, prices never corrected
>5% except in periods of 'shocks,'" she added.