The market will hit bottom this year.
Analysts expect a slight uptick in private property sales transactions this year, with prices expected to drop at a slower pace compared to the past twelve months.
A report by PropertyGuru highlighted that more buyers will be tempted to enter the market as prices have already declined to a level that is palatable for most buyers.
"We foresee that transaction volumes in 2016 will average between 3,500 – 4,000 units in each quarter. In total, we can expect 14,000 – 16,000 units to be transacted in 2016, marginally above that recorded in 2015 by 3 – 5 percent. As for prices, we expect them to continue to decline, albeit at a slower pace, with the market slated to bottom out at the end of 2016," the report said.
"Given that prices have displayed a stable rate of decline per quarter of between 0.5 – 1.3 percent from 2013 to 2015, there is a strong possibility they will display a similar pattern of sustained downward moderation, if things will remain status quo. Prices are likely set to decline by another 2 - 4 percent by the end of 2016," the report added.
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