Residential
Resales and private home prices expected to fall this year
2011 Q4’s estimates did not bode well for 2012’s private homes and resale flats prices. According to URA’s private residential property price index, there was only a 0.2% increase from Q3 to Q4 2011, much lower than the 1.3 % increase from Q2 to Q3.
With the uncertain economy and the newly implemented cooling measures, prices are expected to fall but how much they will fall is the question. Developers have to lower the prices but need to adjust it to the right level so that buyers will be attracted without expecting too much.
With the ABSD, the private residential property price index for 2012 is expected to fall by 10-15%, with the luxury sector suffering the worst since most buyers in this sector are foreigners who have to pay the 10% ABSD. Overall demand may ...
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