Chart of the Day: Private home completions to bring prices down by up to 7% in 2015

As cooling measures remain unchanged.

Occupancy rates will likely continue to fall, as more units enter the market in 2015 and foreign worker policy remaining tight.

According to OrangeTee Research, a total of 21,359 units are expected to be completed in 2015, up 7.1% from 19,941 in 2014. The increase in completions will put further pressure in the rental market, especially in the OCR. 

OrangeTee adds that current cooling measures are expected to remain unchanged, leading to a tightened credit situation in the market and keeping a lid on buyer demand. Furthermore, with interest rates widely expected to rise in mid-2015 coupled with uncertainties in the global economy, buyers are expected to remain cautious and adopt a “wait and see” attitude. The accumulation of these factors would put further downside pressure on prices. We expect prices to fall 5 to 7% in 2015.