On back of a supply glut.
The rising risk of a flat oversupply and the US Fed’s expected interest rate hike will cause home prices to decline more quickly towards the end of the year.
According to Barclays, the outlook for the domestic residential sector remains bleak as prices continue to fall and sales volumes remain depressed.
“We reiterate our negative stance on Singapore’s residential sector and expect home price declines to accelerate towards the end of 2015 as we see a risk of rising unsold inventory and a potential interest hike. We continue to believe the government will only start unwinding measures when prices fall a cumulative steeper 10-15%, perhaps in mid-2015,” stated Barclays.
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