Home prices in the CCR to dip 2-3%

But price decline could slow in other segments.

According to Knight Frank, the market is currently at an ‘inflexion point’ in terms of prices, and the downward fall could persist towards the second half of 2014 as the property cooling measures and TDSR ruling continue to bite market sentiment.

Prices in the CCR are expected to fall by another 2 to 3 per cent in the next 3 quarters this year, with an estimated 3 to 4 per cent decline in 4Q 2014 y-o-y. Price declines in the RCR could slow in the second half this year, with an overall decline of 4 per cent by 4Q 2014 y-o-y.

The new sale segment could be the more resilient market segment given its dual attributes of close proximity to city centre and lower prices compared to the high-end new sale private homes in CCR. For OCR, we expect prices of mass market homes to fall by another 2 to 3 per cent in the next 3 quarters this year, with an estimated 3 per cent decline in 4Q 2014 y-o-y. 

The moderation in HDB resale flat prices would inevitably impact on price trends for the mass market private homes segment. Assuming that current policies remain in force to year end, overall private home prices is envisaged to decline by an average of 3 to 4 per cent in 4Q 2014 y-o-y