Private home prices to remain under pressure as supply balloons: analysts

Prices have drifted down by 0.4% in 2Q.

The inflow of newly completed units continue to exert pressure on Singapore’s private home market, with analysts predicting a 5%-8% price correction this year.

According to a report by CIMB, the drop of private home prices was led by outside of the central region, which fell 0.7% qoq while HDB resale prices inched up 0.1% qoq.

Meanwhile, the report added that the looming deadline for unsold inventory facing Qualifying Certificate and Additional buyers’ Stamp Duty penalties should intensify from 2017 and we anticipate developers lowering prices to clear stock.

“This will provide another drag to private home prices, on top of the supply indigestion,” the report said.