Hopes of a decline in private home prices are fading: analyst

Consequently, sales volumes are predicted to drop.

According to Knight Frank, total sales volume of new sale and resale private residential properties is likely to be affected for the second half this year – potentially down by 10 per cent to 15 per cent q-o-q in 3Q 2013.

This trend is projected to arise given the existing property cooling measures and the latest MAS ruling on debt servicing framework that was announced on 28 June 2013.

Here's more from Knight Frank:

Nonetheless, we do not expect overall prices to decline at least for 3Q 2013, as long as the housing market is supported by genuine demand from local buyers in particular first-time home buyers with no major existing loans, and should low interest rates continue to prevail in the near term.

Following bullish land bidding for the past year, developers for upcoming project launches would also have to factor higher development costs in their selling prices. 

Taking into consideration of the new measures, proactive initiatives by developers for example discounts for bigger units, incorporating more popular unit types into their projects such as dual key units, or other innovative marketing strategies, would be needed to draw buyers to their newly launched projects.