Luxury apartments in the CCR plunged 17% to $2,450psf

But developers won’t slash prices.

Various consultancies estimated a double-digit percentage price falls for luxury homes last week.

According to OSK-DMG, an analysis by CBRE based on caveats lodged shows that the average price of new luxury apartments above SGD5m in the core central region (CCR) sold by developers plunged 17% from SGD2,950 psf at end-2013 to SGD2,450psf at end-2014. The resale market for these units held up better, falling by a smaller 6.2 per cent to an average SGD2,650 psf.

While pressures on luxury home prices could persist, property consultants reckon that prices of such units could find some support this year.

Desmond Sim, CBRE head of research for Singapore and Southeast Asia, pointed out that the estimated 17 per cent drop in new luxury apartments last year are based on transactions that are "few and far between".

Sim believes developers are likely to adopt "innovative sales schemes" rather than slash prices this year.