Which Singapore region faces wilting property values?

Private home owners in the Core Central region should brace for a 5 to 8% decline in residential prices.

Mass market condominiums located in the peripheral Outside Central areas are also vulnerable to a 3 to 5% dip in values to match the newer developments that have slashed their prices in response to more tepid demand.

These price declines can be blamed on a torrent of property cooling measures introduced to the housing market, according to a projections release from PropNex Realty.

"The latest round of cooling measure which include, the ABSD, a lower Loan-To-Value ratio cap of 60% and an extended minimum holding period for imposition of Sellers’ Stamp Duty (SSD) to four years, with the SSD increased to up to 16%, targeted at speculators and encouraged more home buyers to adopt a mid-to-long term view for their property purchase/investment. The impact is evident in the lowest transaction volume in the Core Central Region (CCR) in 2011," said Propnex Realty.

For 2012, there will be an overall 5–8% decline in prices for private residential properties in CCR, predicts Propnex Realty CEO Mr Mohamed Ismail.

"Mass market condominiums in the Outside Central areas should see a moderation of 3–5% dip, as new developments in this area are launched at prices that are sensitive to the cooler market sentiment," he added.

"With the introduction of more Executive Condominiums in 2012, the mass market private properties should see price stabilization as the ‘sandwich’ class is given more opportunities of owning a private property," he said further.

With increased supply anticipated, an overall price correction of approximately 5% dip in the private property price index will be felt in 2012, Mr Ismail said.