Singapore’s grueling home price deadlock might finally be broken this year

Developers and sellers will capitulate.

It will be only a matter of time before home developers throw in the towel and surrender to the whims of cost-conscious property buyers.

A report by UOB said that private home prices will fall by a further 5-10% this year as developers and sellers capitulate to buyers' demands.

Although new home sales have declined sharply, prices have remained relatively elevated because of developers’ holding power.

"Some resolution to the stalemate could emerge this year as developers and sellers capitulate in the face of rising interest rates and weakening rentals. Increased willingness by developers/ sellers to cut prices could help spur inventory clearance as more price-sensitive demand returns. We expect a further 5-10% fall in private home prices this year,” the report said.