Will price discounts continue to boost private home sales in 2016?

Sales are seen to range between 7,000-10,000 units.

The recent trend of price discounts will likely continue for the rest of 2016, enticing more buyers into the market, according to a report by RHB.

Overall, estimates place private home sales—excluding executive condominiums—to range between 7,000-10,000 units. In addition, prices are expected to dip by 3-5% this year. As at May, private home sales stood at 3,271 unites with prices slipping 0.7% in the first quarter of 2016.

RHB notes it prefers well diversified developers with stock specific catalysts, and champions City Developments Limited as its top pick for the sector.

Meanwhile, RHB asserts that new launches to look for in assessing market demand include Lake Grande and Queens Peak along Dundee Road and Forestwood Residences at Lorong Liew Lian.