Analysts predict singapore private property prices to fall up to 26pc in coming years

Singapore’s residential property market is set for a significant downturn in the next three years and prices are expected to fall, it is claimed.

Prices could fall between 22 and 26%, according to Daiwa Research. ‘We believe the residential property market could remain depressed for several years, triggered initially by a likely forthcoming gross domestic product slowdown in 2012 and lingering global economic uncertainty,’ it said in a new report.

From late next year, Daiwa said, structural issues such as the rapid build up of unsold inventory in the primary market and vacant rental units will take Centre stage and keep home prices and rents in check for several years.

Daiwa based its prediction on the currently high unsold inventory levels and forecast an influx of new supply that together will flood the market. Already, new housing supply at the end of September hit the highest level since pre-global financial crisis levels at 86,322 units noted Daiwa. It added that just 43%, or 37,114, of these units have been sold.

Source: Property Community