Home prices likely to climb 7% in 2021

RHB revised their forecast up from 0-3%. 

Residential property prices are expected to increase between 5-7% this year, the RHB reported, revising its initial forecast of 0-3%. 

RHB noted the revision was due to a reduced probability that cooling measures will be in place as well as the resilient job market with falling unemployment levels. 

Meanwhile, it maintained its full-year new sale volume estimate of 9,000-10,500 units. 

Singapore was recently placed under Phase 2 (Heightened Alert) from 16 May to 13 June, in light of the resurgence of COVID-19 outbreak. 

This led to a drastic reduction in the capacity of show flats. It also limited buyers to groups of two in resale flat viewings. 

“The move has helped cool down some of the frenzy in the residential market, with resale volume falling 11.4% MoM in May based on the latest Singapore Real Estate Exchange (SRX) data,” the report read in part.

“The tightened measures however have lowered the near-term risk of additional stringent cooling measures in our view as the Government is likely to adopt a cautious approach amidst current uncertain market conditions.”