Home prices may rise 10% in 2011

Price growth would likely decrease from 2010's preliminary estimate of 17.6% due to the presence of downward pressures.

Colliers International said that among other factors, the easing of economic growth from a preliminary estimate of 14.7% in 2010 to between 4% and 6% in 2011 should take some exuberance off the market.

The uncertainties still lurking in the larger global economy, coupled with the risk of further government cooling measures, should put the majority of home buyers on a cautiously-optimistic stand and contain their risk appetite; thus, limiting their propensity to commit to prices above the last done.

Ample supply of mass-market homes coming on stream from the ramped-up 2010 GLS program should also help to minimize growth for mass-market homes in 2011 to less than 5%; thereby, reducing the growth momentum for the overall private property price index.