Chart of the Day: Here’s solid proof that property prices won’t be rebounding next year

They’re now down 8% from their peak.

While 2015 had its fair share of challenges for the residential market, the coming year isn’t shaping up to be a better year for property developers either.

This year, private home prices have declined by 3% and is down 8% from its peak in 3Q13, according to analysts from RHB Research.

And the brimming supply in the sector, coupled with the weight of policy measures, isn’t helping, as prices are projected to decline by 6-8% next year, RHB Research said.

“Developers with unsold inventory facing looming deadlines of qualifying certificate (QC) charges/ additional buyer's stamp duty (ABSD) fees are likely to trim prices to clear stock,” they added.

Meanwhile, developers are clinging to the hope of some policy easing for the sector.

“Against a backdrop of declining price/volumes and lack of speculative demand in the system, we expect the government to review and fine-tune the array of measures that have been introduced since 2009,” RHB Research said.