2 things that can cast doubts on property prices

Sharper unemployment rates can put downward pressure on prices.

October was festive for the residential property market after sales rose 87%. However, there are two things the market has to be on the lookout for as these can dampen its overall sentiment.

According to DBS Vickers Securities, unemployment rate and interest rate uncertainty will cast a pall on price appreciation potential of properties.

"We maintain our view that the Singapore property market remains on a modest correction path, mainly from the suburbs (homes in the Outside Central Region), while prices in the core central region (CCR) is slowly bottoming out," DBS said.

It furthered, "Key uncertainties come from a sharper-than-projected rise in Singapore citizens’ unemployment rate in 2017, and shaper-than-expected rise in interest rates impacting affordability."

To recall, overall unemployment in H1 picked up at 2%, according to Ministry of Manpower.