High-end homes finally headed for a rebound after sharp price tumble

Prices have slipped 24% since June 2013.

The high-end property market may finally be in for a rebound after suffering steep price cuts in the past two years.

Barclays analyst Tricia Song noted that high-end home prices have declined by 24% from their peak in June 2013, which could signal an eventual easing in property curbs for the sector.

“With the overall index having corrected 5.9% from the peak, and we expect measures to be unwound by mid-
2016 when mass market home prices decline a further 4-9%. We believe ABSD and Sellers Stamp Duty (SSD) will likely be eased or taken off," she said.

She also noted that the supply of new high-end to luxury properties is tapering off, with the government trimming available sites in recent land sales.

The effects of Qualifying Certificate (QC) rules are also beginning to subside as developers find ways to move unsold units in the weak market.

"We turn more positive on the high-end residential market as prices in this segment have fallen by 24% from their peak vs. a 6% decline for the overall market and we expect it to benefit the most if the ABSD is eased. Supply has tapered off and the effects of Qualifying Certificate (QC) rules are subsiding," she said.