Home prices to slide this year: PropNex
Prices of private homes may stabilise this year, as more opportunity has been given to the 'sandwich' class to own private property, according to PropNex Realty.
With increased supply anticipated, PropNex CEO Mohamed Ismail expects prices to soften further, "resulting in an overall price correction of approximately five percent dip in the private property price index for 2012."
PropNex said that private home prices in the Core Central Region (CCR) could experience a price decline of between five and eight percent, while the Outside Central Region (OCR) could see a price moderation of between three and five percent, "as new developments in this area are launched at prices that are sensitive to the cooler market sentiment."
The firm added that the latest round of cooling measures which include the ABSD, a lower loan-to-value (LTV) ratio cap of 60 percent and an extended minimum holding period for imposition of sellers' stamp duty (SSD) to four years, with the SSD increased to up to 16 percent is targeted at speculators and encourages more home buyers to adopt a mid-to-long term view for their property purchase/investment. Related Stories: Record 45000 leases inked in 2011
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