Property prices to fall with rising unemployment
The rise in the unemployment rate here could see property prices stagnate.
DBS Vickers Securities expects private property prices to fall as the unemployment rate in Singapore increases, reported Singapore Business Review.
The property market is expected to move in two directions, with prices in the Core Central Region (CCR) set to bottom out, while those in the Rest of Central Region (RCR) continue to witness declines of up to five percent.
However, the sharper-than-expected slowdown in Singapore’s economic growth of 0.6 percent in Q3 2016, and the rise in the unemployment rate among Singaporeans at 3.1 percent, could see property prices stagnate, said DBS Vickers.
Based on data from the Urban Redevelopment Authority (URA) and DBS, the brokerage firm noted that property prices continue to drop as the unemployment rate rises.
“We note that the worsening outlook of both data-points might result in weaker-than-expected prices,” it said.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
