Mass-market home prices to ease 2% in 2011

The outlook for the private residential market is cautiously optimistic in 2011.

According to Colliers International, the number of new homes sold by developers is thus expected to taper off from 2010's high to a more sustainable level in 2011, possibly hovering in the region of 10,000 units.

Overall private residential home prices are expected to rise at a more moderate pace of 5% to 8% in 2011. Prices for mass-market homes are expected to remain stable or to ease by up to 2% while prices of mid- and high-end properties could potentially increase by up to 8%.

On the leasing front, the expected rise in expatriate arrivals will lend support to demand, with rents potentially rising by between 5% and 8% in 2011.